ORLEN Group to Boost Gas Production in Norwegian Operations

PGNiG Upstream Norway, a subsidiary of the ORLEN Group, has acquired an extra 19.5% interest in the Eirin gas field from Equinor Energy. This move will nearly double the gas production volume for ORLEN Group from the field, reaching over 1.5 billion cubic meters.

The acquisition will grant PGNiG Upstream Norway a total ownership stake of 41.3% in the Eirin field, facilitating further augmentation of its natural gas production and streamlining operational efficiency across the Norwegian Continental Shelf. Drilling activities at Eirin are slated to commence in the third quarter of this year, with production anticipated to commence in the latter half of 2025. Two production wells will be drilled within the field, with gas transportation facilitated via a subsea pipeline to the platform situated at the Gina Krog field, where ORLEN Group also holds a matching 41.3% interest. Aligning the Group's ownership shares in both Gina Krog and Eirin will aid in optimizing the management costs associated with these fields.

"Our focus on upstream endeavors is complemented by efforts to optimize our investments for maximum shareholder value. Eirin represents a mature project slated for production next year. Leveraging the existing infrastructure at our neighboring Gina Krog field will streamline Eirin's development timeline and operational expenses, concurrently lowering the CO2 intensity linked with our production," remarked Ireneusz Fafara, President of the Management Board of ORLEN SA.

Recently, the Gina Krog platform underwent electrification, transitioning to nearly 100% renewable energy sourced from onshore facilities. Consequently, the carbon footprint of production on the platform has substantially decreased, averaging around 0.7 kg of CO2 per barrel of oil equivalent this year, in stark contrast to the Norwegian Continental Shelf's average of approximately 8 kg per barrel. Integrating Eirin with Gina Krog has the potential to further diminish the platform's carbon footprint by scaling up hydrocarbon processing volumes while maintaining total emissions at a comparable level.

" The Eirin and Gina Krog fields are integral components of the Sleipner production zone, serving as vital production hubs for ORLEN in the Norwegian Continental Shelf region. Presently, this hub contributes roughly one-third of the company's overall hydrocarbon production in Norway. The advancement of Eirin will optimize the utilization of Sleipner area infrastructure, thereby prolonging the operational lifespan of its assets," stated Wieslaw Prugar, Upstream Member of the ORLEN Management Board.

The sales and purchase agreement between PGNiG Upstream Norway and Equinor Energy is contingent upon approval from the Norwegian Ministry of Energy. Following the transaction's conclusion, PGNiG Upstream Norway's stake in Eirin will rise to 41.3%, with Equinor Energy retaining the remainder and continuing as the operator. Eirin's reserves comprise roughly 27 million barrels of oil equivalent, with natural gas constituting over 85% of the total.

At present, PGNiG Upstream Norway possesses stakes in 19 operational fields and is in the process of developing an additional nine. In the previous year, the company's production nearly reached 27 million barrels of oil equivalent, which included over 3 billion cubic meters of gas. Anticipating growth, the company aims to elevate its gas production to 4 billion cubic meters this year.