ORLEN Spó?ka Akcyjna : Group to increase its gas production in Norway

PGNiG Upstream Norway of ORLEN Group has bought an additional 19.5% stake in the Eirin gas field from Equinor Energy. As a result of the transaction, the volume of gas that ORLEN Group will produce from the field will almost double, to over 1.5 billion cubic metres. 

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PGNiG Upstream Norway of ORLEN Group has bought an additional 19.5% stake in the Eirin gas field from Equinor Energy. As a result of the transaction, the volume of gas that ORLEN Group will produce from the field will almost double, to over 1.5 billion cubic metres.

The purchase will provide PGNiG Upstream Norway with a total of 41.3% share in the Eirin field enabling further increase of equity natural gas production as well as optimization of the company's operations on the Norwegian Continental Shelf. Drilling on Eirin is scheduled to start in Q3 this year and production is expected to start in the second half of 2025. Two production wells will be drilled in the field, from which gas will be delivered with a subsea pipeline to the platform at the Gina Krog field, in which ORLEN Group also holds a 41.3% stake. Equalising the Group's stakes in Gina Krog and Eirin will help to optimise the costs of joint managing these fields.

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"While pursuing our upstream aspirations, we are also taking steps to ensure the highest possible efficiency of our investments to maximize shareholder value. Eirin is a mature project that will start production next year. Production will be carried out using the already existing infrastructure at our nearby Gina Krog field. This will reduce Eirin's development time and operational costs while reducing the CO2 intensity associated with our production", said Ireneusz Fąfara, President of the Management Board of ORLEN SA.

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The Gina Krog platform has been recently electrified which means that is powered with almost 100% renewable energy generated onshore. As a result, the carbon intensity of production on the platform is very low, amounting this year to ca. 0.7 kg of CO2 per barrel of oil equivalent while the average for the Norwegian Continental Shelf is about 8 kg per barrel. The tie-in of Eirin to Gina Krog may allow the platform to further reduce its carbon intensity thanks to increasing the volume of hydrocarbons processed while keeping the total absolute emissions at a comparable level.

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"The Eirin and Gina Krog fields belong to the Sleipner production area, which is one of ORLEN's main production hubs on the Norwegian Continental Shelf. This hub currently accounts for approximately one-third of the company's total hydrocarbons production in Norway. The development of Eirin will enable a more efficient use of the Sleipner area infrastructure, extending operational life of its assets", said Wiesław Prugar, Member of the ORLEN Management Board, Upstream.

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PGNiG Upstream Norway and Equinor Energy sales and purchase agreement is a subject to an approval from the Norwegian Ministry of Energy. Upon completion of the transaction, the PGNiG Upstream Norway's total interest in Eirin will increase to 41.3%. The remainder will be held by Equinor Energy, which is also the operator. The field's reserves amount to approximately 27 million barrels of oil equivalent, of which more than 85% is natural gas.

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PGNiG Upstream Norway currently holds shares in 19 producing fields and is developing another nine. Last year, the Company's production reached almost 27 million barrels of oil equivalent, including more than 3 billion cubic metres of gas. The Company expects to increase its gas production to 4 bcm this year.

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The purchase will provide PGNiG Upstream Norway with a total of 41.3% share in the Eirin field enabling further increase of equity natural gas production as well as optimization of the company's operations on the Norwegian Continental Shelf. Drilling on Eirin is scheduled to start in Q3 this year and production is expected to start in the second half of 2025. Two production wells will be drilled in the field, from which gas will be delivered with a subsea pipeline to the platform at the Gina Krog field, in which ORLEN Group also holds a 41.3% stake. Equalising the Group's stakes in Gina Krog and Eirin will help to optimise the costs of joint managing these fields.

"While pursuing our upstream aspirations, we are also taking steps to ensure the highest possible efficiency of our investments to maximize shareholder value. Eirin is a mature project that will start production next year. Production will be carried out using the already existing infrastructure at our nearby Gina Krog field. This will reduce Eirin's development time and operational costs while reducing the CO2 intensity associated with our production", said Ireneusz Fąfara, President of the Management Board of ORLEN SA.

The Gina Krog platform has been recently electrified which means that is powered with almost 100% renewable energy generated onshore. As a result, the carbon intensity of production on the platform is very low, amounting this year to ca. 0.7 kg of CO2 per barrel of oil equivalent while the average for the Norwegian Continental Shelf is about 8 kg per barrel. The tie-in of Eirin to Gina Krog may allow the platform to further reduce its carbon intensity thanks to increasing the volume of hydrocarbons processed while keeping the total absolute emissions at a comparable level.

"The Eirin and Gina Krog fields belong to the Sleipner production area, which is one of ORLEN's main production hubs on the Norwegian Continental Shelf. This hub currently accounts for approximately one-third of the company's total hydrocarbons production in Norway. The development of Eirin will enable a more efficient use of the Sleipner area infrastructure, extending operational life of its assets", said Wiesław Prugar, Member of the ORLEN Management Board, Upstream.

PGNiG Upstream Norway and Equinor Energy sales and purchase agreement is a subject to an approval from the Norwegian Ministry of Energy. Upon completion of the transaction, the PGNiG Upstream Norway's total interest in Eirin will increase to 41.3%. The remainder will be held by Equinor Energy, which is also the operator. The field's reserves amount to approximately 27 million barrels of oil equivalent, of which more than 85% is natural gas.

PGNiG Upstream Norway currently holds shares in 19 producing fields and is developing another nine. Last year, the Company's production reached almost 27 million barrels of oil equivalent, including more than 3 billion cubic metres of gas. The Company expects to increase its gas production to 4 bcm this year.