PGNiG Approved for Norwegian License Interest

PGNiG Norway, a subsidiary of Polskie Gornictwo Naftowe i Gazownictwo SA, has received approval from the Norwegian Ministry of Energy and Petroleum to double its interest in the PL558 licence on the Norwegian Continental Shelf following a purchase of a further 15% licence interest from Nexen Exploration Norge AS.

Following the Ministry's approval, the licence interests of the respective companies are as follows: E.ON Ruhrgas Norge AS - 30%, Det norske oljeselskap AS - 20%, Petoro AS - 20% and PGNiG Norway - 30%.

Increasing its licence interest from 15% to 30% has been one of the key elements of PGNiG Norway's strategy. The licence area is located in the immediate vicinity of the Skarv field and is adjacent to the PL350 license, in which PGNiG Norway holds a 30% interest.

The licence was originally awarded as part of the APA2009 licensing round and covers an area of 145.854 square kilometres. The licence area has considerable exploration potential, with crude oil and natural gas reserves likely to be discovered. In the period from April 2010 to October 2011, the 3D seismic surveys covering the area were analysed and the crude oil and gas reserves were appraised.

PGNiG has focused on investing in areas with easy access to the infrastructure. The close vicinity of the Skarv FPSO is likely to ensure profitable export of the gas and crude oil to be produced in the PL558 licence area.

Currently, PGNiG Norway holds eight exploration and production licences on the Norwegian Continental Shelf. The company's largest investment project involves development of the Skarv field. In 2012, output from the Skarv field is expected to reach 0.25 million tonnes of crude oil and 0.24 billion cubic metres of natural gas. At present, total reserves in licences covering the Skarv field held by PGNiG Norway amount to approximately 70.9 million boe.

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