Poland Boosts Norwegian Gas Assets

Poland's state-controlled oil and gas producer, PGNiG, has received Norwegian government approval for its purchase of 42.38% in the Tommeliten Alpha field from Equinor, it said December 17. Its share of the output from the field will add 0.5bn m³/yr to its total.

The government's consent was the last of the conditions precedent of the agreement to purchase the stake, following signature of the agreement on October 18 for $220mn.

PGNiG's CEO, Piotr Wozniak, said the acquisition meant a "significant increase in natural gas production in the region" and allows PGNiG to diversify its sources of gas on attractive financial terms.

Tommeliten Alpha will also enable PGNiG to extract about 0.5mn mt of oil and natural gas liquids in its peak production year. According to current plans, production is expected to start in 2024.

Tommeliten Alpha is a gas and condensate field with documented recoverable resources amounting to 12.8bn m³ of natural gas, 5.9mn mt oil and 0.5mn mt of NGL, or 52mn barrels of oil equivalent, net to PGNiG. The company believes in an upside potential in the field reserves. In addition there is a significant exploration upside in the direct vicinity of Tommeliten Alpha.

The discovery will be developed with the participation of large and experienced oil companies. The operator is US ConocoPhilips (28.26%) and its current partners are French Total (20.23%) and Italian Eni (9.13%).