The Norwegian Ministry of Petroleum and Energy has approved the geological documentation and development plans for two fields in which PGNiG Upstream Norway holds interests. Production is planned to begin in 2020.
The documents concerning the Ærfugl and Skogul fields precisely describe the development method, production plan and the capital expenditure schedule. PGNiG Upstream Norway and its partners submitted requests to approve the development plans in December 2017.
Drilling of production wells and installation of downhole equipment in both fields is planned for 2019/2020. Implementation progress in line with the schedule will enable the start of production from the Skogul and Ærfugl fields in Q1 2020 and Q4 2020, respectively.
“The decisions that have been made are a milestone for both projects. The preparation phase is over and now we are getting to grips with its implementation,’ said Piotr Woźniak, President of the PGNiG Management Board. ‘Both projects are highly promising. Especially the development of the Ærfugl gas field will translate into significantly higher production of natural gas which we want to transmit from Norway to Poland through the planned new gas pipeline via Denmark starting from 2022. The development schedule for the Norwegian fields is in perfect tune with the schedule for the Baltic Pipe project,” added Piotr Woźniak.
Ærfugl is a gas condensate field located in the Norwegian Sea in the vicinity of the Skarv field, where PGNiG has been producing hydrocarbons since 2012, while Skogul is an oil field in the North Sea, located near the Vilje field, where PGNiG started production in 2014.
Ærfugl’s recoverable reserves are 31.3 bcm of natural gas, 6 mcm of condensate, and 3.5 million tonnes of NGL (including LPG, naphtha, ethane). The reserves available in the Skogul field are 8.93 million barrels of crude oil, and 170 mcm of associated gas.
PGNiG Upstream Norway holds an 11.92% interest in the Ærfugl field and a 35% interest in the Skogul project. It is expected that during the peak production period PGNiG will produce approximately 0.5 bcm of natural gas from the Ærfugl field and 1.4 million barrels of oil from the Skogul field annually.
Aker BP is the operator for both fields. PGNiG Upstream Norway is Aker BP’s partner in both projects. The other partners are Statoil and DEA Norge AS.
PGNiG Upstream Norway currently holds interests in 21 exploration and production licences on the Norwegian Continental Shelf, acting as the operator under two of them. The PGNiG Group’s recoverable reserves in Norway, where it has been engaged in upstream projects since 2007, now total 83 mboe (January 1st 2018). The company plans to participate in future licensing rounds and is identifying opportunities to acquire further licences in Norway.