Norske Shell to transfer shares in two Norwegian North Sea fields to PGNiG
Offshore staff
STAVANGER, Norway – Norske Shell has agreed to sell to PGNiG Upstream Norway (PUN) interests in the producing Kvitebjørn and Valemon fields in the Norwegian Sea.
Assuming approval by the relevant authorities, the transaction will raise PGNiG’s gas production in Norway to 0.9 bcm in 2021, up by 45% compared with 2019.
Gas from the two fields, along with volumes from previous acquisitions made during 2017 and 2020 (including a higher share of the Gina Krog field agreed earlier this year), will head to Poland once the Baltic Pipe link becomes operational.
PUN will have a 6.45% interest in Kvitebjørn, 3.225% in Valemon, and a stake in the associated pipeline infrastructure. Both fields contain mainly gas.
Kvitebjørn is in the northern Norwegian North Sea in a water depth of 190 m (623 ft). Production started in 2004 through a fixed platform with integrated drilling modules: gas is piped to the Kollsnes terminal, while the condensate is transported via a branch of Troll Oil Pipeline II to the Mongstad terminal.
Valemon, to the west of Kvitebjørn, is in 135 m (443 ft) of water and came onstream in 2015 via a fixed platform with hydrocarbon separation, operated remotely from shore. Condensate and gas is exported to Kvitebjørn and from there to Mongstad.
Currently PGNIG has 200 MMboe of oil and gas reserves in the Norwegian sector and shares of seven producing fields: Skarv, Morvin, Vale, Vilje, Gina Krog, Skogul and Aerfugl.
Development and appraisal are also under way on Duva, Tommeliten Alpha, King Lear, Aerfugl Outer and Shrek.
09/22/2020
