PGNiG has Started Work on the Concept of Developing the Norwegian Tommeliten Alpha Field
Thursday 13 June 2019
PGNiG Upstream Norway and its partners have started work on the selection of technical solutions that will be used to exploit the deposit. The final development concept of Tommeliten Alpha is to be ready in the third quarter of 2020.
The shareholders of the Tommeliten Alpha concession have completed the assessment of the technical possibilities for the development of the deposit and identified the optimal variants of its economic exploitation. This means the transition from the Assessment Stage to the Selection Stage. Now it will be decided which detailed technical solutions will be used to develop the deposit.
- The applications completing the Assessment Stage are in line with our expectations and confirm the validity of the decision to purchase shares in the concession. The Tommeliten Alpha field is economically attractive and will significantly increase the output of the PGNiG Group on the Norwegian Continental Shelf, "said Piotr Woźniak, President of the Management Board of PGNiG SA . - Work on the commencement of development is proceeding in accordance with the schedule, which assumes the launch of production in 2024.
During the Selection Stage, PGNiG Upstream Norway and other partners will decide, among others, on the number and type of wells, type of exploitation heads used, technical aspects of the location of the undersea gas pipeline and connection of the deposit to the existing mining infrastructure. This will allow us to develop a final development concept, on which the final costs, the exact schedule of starting extraction and the production profile will depend.
PGNiG estimates that the volume of gas extraction from Tommeliten Alpha per unit will be about 0.5 billion cubic meters. per year for the first six years of operation. In addition, the deposit will allow PGNiG to extract about 500,000 tonnes of crude oil and NGL in the peak year of production.
According to data from the Norwegian Oil Directorate, documented recoverable resources of Tommeliten Alpha amount to 12.8 billion m 3 of natural gas, 5.9 million m 3 of crude oil and 0.5 million tons of NGL. The total hydrocarbon resources corresponding to the PGNiG's share is approximately 52 million boe.
PGNiG Upstream Norway has bought 42.4 percent. shares in Tommeliten Alpha in December 2018 from Equinor (former Statoil). The other shareholders are ConocoPhillips (operator, 28.3 percent), Total (20.2 percent) and Vår Energi (9.1 percent).