PGNiG Bought Further Shares in the Deposit in the North Sea

Tuesday 16 July 2019

PGNiG Upstream Norway has acquired 20% shares in the Duva field on PL636 and PL636B licenses from Wellesley Petroleum. The start of production is planned at the turn of 2020 and 2021.

"We are focused on the implementation of the strategy related to the increase in extraction in Norway, which is why we consistently build our portfolio of shares in the concessions there." said Piotr Woźniak, President of the Management Board of PGNiG SA.

"The Duva deposit is one of the most development projects on the Norwegian Continental Shelf. It is characterized by exceptionally good quality of reservoir rocks. The amount of the deposit and the proximity of the existing infrastructure reduce the cost of development and production. We estimate that the average natural gas production by PGNiG from the Duva field during the first five years of operation of the Baltic Pipe gas pipeline between 2023 and 2028 will amount to 0.13 billion cubic meters. annually" he added.

The Duva deposit is a gas and oil deposit discovered in 2016. It lies within the PL636 and PL636B license area in the North Sea, approx. 140 km north of the city of Bergen. According to data from the Norwegian Oil Directorate, the deposit's resources are 88 million barrels of oil equivalent (including approximately 8.4 billion cubic meters of natural gas).

"After reaching the development stage, we decided to focus on our core activity - searching - and return to the development of another important project for us on the Grosbeak deposit. PL636 was the first Wellesley license on the Norwegian shelf and we are proud of our participation in the search, discovery and planning of its operation. We decided that PGNiG will be the best new owner of shares in the concession at the stage close to commencement of production. I believe that their extensive experience will contribute to the further development of the Duva field. I wish you good luck with PGNiG and other partners in this field in bringing it to the production phase. I would like to thank the PGNiG team for cooperation in this transaction and hope to cooperate in the future." said Chris Elliott, president of the Wellesley Group.

In June 2019, the Norwegian Ministry of Petroleum and Energy approved the development plan for the Duva deposit. Three drilling wells will be made on it - two of them will produce crude oil and one will produce natural gas. The development plan allows for an additional oil production well. After the commencement of exploitation planned at the turn of 2020 and 2021, the maximum annual production from the deposit in the initial period is to amount to approx. 30 thousand. boe. The operator of the concession is Neptune Energy Norge (30% of shares). The remaining shareholders, apart from PGNiG Upstream Norway, are Idemitsu Petroleum Norge (30%) and Pandion Energy (20%).

Previous acquisitions of PGNiG Upstream Norway is the acquisition of 42.4 percent. shares in the Tommeliten Alpha field in 2018 and 22.2 percent. shares in the King Lear deposit in June 2019. After finalizing the transaction related to the Duva deposit, the company will hold shares in 27 licenses on the Norwegian Continental Shelf, where it is an operator on four of them.