PGNiG Upstream Norway acquires 20% stake in Atlantis field
PGNiG Upstream Norway, a subsidiary of Poland's Orlen Group, has acquired a 20% stake in the Atlantis field on the Norwegian Continental Shelf, it announced on June 24. Equinor, the license operator, will hold the remaining 80% interest once the deal is finalised.
By acquiring equity in Atlantis, Orlen Group aims to sustain its gas production in Norway, which will be delivered to Poland via the Baltic Pipe. Ireneusz Fafara, CEO of Orlen, commented, “Orlen Group’s investment in the Atlantis field represents our consistent strategic effort to secure natural gas supplies to the Polish gas system. This is a project with above-average economic efficiency. Further diversification of our project portfolio in Norway provides a strong and stable basis for Orlen's upstream business.”
The acquisition will provide PGNiG Upstream Norway with 13mn barrels of oil equivalent, including 1.5bn m3 of natural gas, according to data from the Norwegian ministry of energy. The license partners plan to develop Atlantis over the next few years.
Discovered in 2020, the Atlantis field's total recoverable reserves are estimated at 65mn barrels of oil equivalent, with potential for further upside. This makes Atlantis one of the largest discoveries on the Norwegian Continental Shelf in the last decade.
The license partners are considering several development options for Atlantis, including a subsea tieback to the Kvitebjorn field platform, in which PGNiG Upstream Norway holds a 6.45% stake and Equinor is the operator, or to the Oseberg field platform, also operated by Equinor. Utilising existing infrastructure will limit production launch costs and reduce the CO2 intensity of its operations, according to the company.
PGNiG Upstream Norway recently reported that the volume of natural gas transported to Poland from Orlen Group's production assets in Norway has increased by over 30%, equivalent to an additional 1bn m3/year. Gas produced from Norwegian fields by PGNiG Upstream Norway now accounts for approximately half of the entire Baltic Pipe capacity booked by Orlen.
The increase in gas delivery to Poland stems from the recent acquisition of Kufpec Norway.