ORLEN to develop new fields on the Norwegian Continental Shelf

ORLEN Group and its licence partners have received approval of the Plan for development and operation of Ørn and Alve Nord fields on the Norwegian Continental Shelf. The development will provide the company with approximately 0.4 bcm of natural gas per year at peak production. Alve Nord and Ørn  carbon intensity will be more than 3 times lower than the global average for upstream industry. Earlier this month the Norwegian authorities has approved development and production plans for other ORLEN Group fields Fenris and Tyrving as well as for the Yggdrasil area.

The development of the Ørn, Alve Nord, Fenris fields and the Yggdrasil area will provide ORLEN Group with 9 billion cubic meters of natural gas over the entire production period. These are key investments that will ensure that we maintain stable, high natural gas production over the coming years. We want the largest possible share of gas sent from Norway to Poland via the Baltic Pipe pipeline to be our equity gas. This will not only guarantee efficient implementation of the Group's business goals but also strengthen the energy security of the country and the entire region," says Daniel Obajtek, President of the Management Board of ORLEN.

Ørn and Alve Nord are located in the Norwegian Sea near the Skarv area, which is the center of production activity of PGNiG Upstream Norway from the ORLEN Group. The company produces from 6 fields in that area: Skarv, Ærfugl, Ærfugl Nord, Idun, Tilje and Gråsel. The development plan for Ørn and Alve Nord assumes the drilling of two wells at each of the fields, which will then be connected by a pipeline running along the seabed to FPSO Skarv. Thanks to utilization of the existing infrastructure the capital expenditure needed to start production will be significantly reduced enhancing overall profitability of both projects. In addition, it will shorten lead time and reduce associated CO2 emissions. The start of production is scheduled for the second half of 2027.

Alve Nord and Ørn's are primarily natural gas reservoirs. Both also contain condensate and Alve Nord also oil. Total recoverable resources attributable to the ORLEN Group are estimated at more than 27 million barrels of oil equivalent (boe). PGNiG Upstream Norway holds a 40% interest in Ørn, with the remaining shares held by Aker BP (operator) and Equinor – 30% each. The ORLEN Group company's interest in Alve Nord is 11.9%, and its license partners are Aker BP (operator, 68%) and Wintershall Dea Norge (20%).

In early June, the Norwegian authorities approved the Plan for development and production for the Fenris field (formerly King Lear) located in the North Sea. Its resources will be exploited with an unmanned platform, which will be connected to the infrastructure of the neighboring Valhall field, contributing to optimization both the development process and the production itself.

Fenris’ development has already commenced with the first hydrocarbons expected in 2027. The ORLEN Group holds a 22.2 per cent interest in the field, which will provide it with recoverable resources of over 3 billion cubic meters of natural gas and almost 19 million boe of crude oil and condensate. PGNiG Upstream Norway expects 0.33 bcm of natural gas per year at peak production. The other shareholder in the field is Aker BP, which acts as operator on the field.

The Yggdrasil project, also approved in June, is one of the largest production projects currently underway on the Norwegian Continental Shelf. ORLEN Group holds more than 12% interests in eight fields, which translates into total recoverable resources of more than 40 million boe, including 2 billion cubic meters of natural gas. Drilling will begin in 2025 and production is scheduled to start in early 2027. The other shareholders - in varying proportions on each license - are Equinor and Aker BP, which is the operator of the entire project.

Also in June, the Norwegian Ministry of Oil and Energy approved the development plan of the Tyrving field, in which PGNiG Upstream Norway holds a 12% interest. Tyrving is an oil field with recoverable resources estimated at 25 million barrels of oil equivalent, of which ORLEN Group accounts for about 3 million barrels. The Alvheim area production infrastructure, including the FPSO Alvheim, will be used to develop the field. This will substantially reduce CO2 emissions associated with the start-up and operation of the field. Estimated emissions will be just 0.3 kg of CO2 per barrel of extracted oil, with the global average of 15 kg of CO2 per barrel. The other shareholders in the field are Aker BP (operator, 61%) and Petoro (27%).

ORLEN Group currently holds interests in 98 licenses on the Norwegian Continental Shelf. The Group's recoverable resources amount to 346.6 million barrels of oil equivalent, placing it among the top 10 players in hydrocarbon exploration and production in Norway. The Group's production on the Norwegian Continental Shelf last year was more than 88,000 boe per day from 18 fields.