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ORLEN Group to Increase Natural Gas Production in Norway

ENERGYORLEN Group to Increase Natural Gas Production in Norway

PGNiG Upstream Norway, a subsidiary of ORLEN Group, has acquired an additional nearly 20 percent stake in the Eirin gas field in the North Sea from Equinor Energy. As a result of this transaction, the volume of gas that ORLEN Group will extract from this field will almost double, reaching over 1.5 billion cubic meters.

The transaction will enable ORLEN to further grow its own natural gas production and optimize its operations on the Norwegian Continental Shelf. Drilling at the Eirin field is scheduled to begin in the third quarter of this year, with production set to commence in the second half of 2025. Two production wells will be drilled in the field, with gas being transported via a subsea pipeline to the Gina Krog platform, in which ORLEN Group also holds a 41.3 percent stake. Aligning the company’s stakes in Gina Krog and Eirin will optimize the management costs of jointly operated fields.

“In pursuing our ambitions for our own oil and gas production, we are currently focusing on maximizing the efficiency of our investments and creating value for our shareholders. Eirin is a mature project that will start production next year. Production will use the existing infrastructure at our nearby Gina Krog field, which will shorten development time and reduce operating costs while also lowering CO2 emission intensity associated with production,” says Ireneusz Fąfara, CEO of ORLEN.

The Gina Krog platform is powered by electricity produced onshore, almost 100 percent of which comes from renewable energy sources, primarily hydropower. As a result, the production emission intensity on the platform is very low and is expected to be around 0.7 kg CO2 per barrel of oil equivalent produced this year, compared to an average of around 8 kg per barrel for the entire Norwegian Continental Shelf. Connecting Eirin to Gina Krog may further reduce emission intensity on the platform by increasing the volume of processed raw material while maintaining the total absolute emission levels at a comparable level.

“The Eirin and Gina Krog fields are part of the Sleipner production area, which is one of ORLEN’s main production hubs on the Norwegian Continental Shelf. This area currently accounts for about one-third of the company’s total production in Norway. Launching production from the Eirin field will enable more efficient use of the hub’s infrastructure and extend the economic exploitation perspective of its assets,” says Wiesław Prugar, ORLEN Management Board Member for Upstream.

The transaction between ORLEN’s Norwegian subsidiary and Equinor is still pending administrative approvals. Upon completion, ORLEN’s total stake in Eirin will increase to 41.3 percent. The field’s resources are estimated at approximately 27 million barrels of oil equivalent, over 85 percent of which is natural gas.

PGNiG Upstream Norway currently operates 19 fields and is developing an additional nine fields to commence production. Last year, the company produced nearly 27 million barrels of oil equivalent hydrocarbons, including over 3 billion cubic meters of gas. The company plans to increase natural gas production to 4 billion cubic meters this year.

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