PGNiG Collects E&P Interest on Norwegian Continental Shelf

PGNiG Norway, a subsidiary of Polskie Górnictwo Naftowe i Gazownictwo SA is to acquire a 35 percent participating interest in PL521 exploration and production license on the Norwegian Continental Shelf.

PL521 license was awarded by the Norwegian Ministry of Petroleum and Energy in the 20th Licensing Round. The license operatorship was awarded to StatoilHydro ASA (which holds a 40 percent participating interest). Svenska Petroleum Exploration Norge A/S holds the remaining 25 percent participating interest.

The 20th Licensing Round was announced in June 2008 and covered 79 new license blocks, which have been subsequently combined into 21 exploration licenses. Unlike in the case of another recently awarded licensing round (APA2008), in the 20th Licensing Round, the Ministry awarded blocks located in new areas offering better exploration prospects. This licensing round enjoyed unprecedented popularity, as shown by license applications submitted by 46 oil companies. PGNiG is among the 34 awarded companies invited to explore new areas. PGNiG strongly believes that StatoilHydro, as an experienced and leading operator, will ensure efficient organization of works in the area covered by PL521 license.

PL521 exploration and production license is situated in the middle part of the Norwegian Sea (at the latitude of Bronnoysund), several dozen kilometers off Skarv field. The license comprises 3 license blocks and covers an area of over 1000 km2. From the geological point of view, the structure is situated in the Trondelag Platform. The exploration efforts will focus on sandstone layers from Trias and early and middle Cretaceous periods situated 1950-2315 meters below the sea level. The sea depth in the area of exploration works is 350-450 meters.

The preliminary duration of the license is six years, with an option to extend its period to 30 years. The works relating to PL521 exploration and production license will start with 3D seismic research. Basing on the analysis of the research results, PGNiG and its partners will decide whether to start drilling in the area covered by the license.

Participation in the 20th Licensing Round and PGNiG's involvement in oil and gas exploration in the Norwegian Sea is one of the elements in the Group strategy, which includes expanding the asset portfolio in the vicinity of Skarv field and close cooperation with experienced companies involved in oil and gas production on the Norwegian Continental Shelf. PGNiG aims to invest in areas with good access to infrastructure, enabling efficient and profitable exports of oil and gas.

This is the third license on the Norwegian Continental Shelf to be awarded this year to PGNiG Norway. In February 2009, PGNiG Norway A/S was awarded a 25 percent participating interest in PL419 license in the Norwegian Continental Shelf. The operatorship of that license is held by Nexen Exploration Norge A/S (a 30 percent participating interest), with the remaining partners being PGNiG Norway (a 25 percent participating interest), Wintershall Norge ASA (a 25 percent participating interest) and Edison International Spa (a 20 percent participating interest). In January 2009, PGNiG Norway A/S was awarded a 30 percent participating interest in PL350 license in the Norwegian Continental Shelf under a contract with StatoilHydro Petroleum A/S. The deposits covered by PL350 license are situated approx. 7-8 kilometers east of Skarv field, in which PGNiG Norway holds a 11.9 percent interest.

Since February 2007, PGNiG Norway holds a 12 percent interest in Skarv, Snadd and Idun fields. The fields are to be drilled for gas in 2011.