ORLEN Group to increase oil and gas production from the Gina Krog field
Together with concession partners, PGNiG Upstream Norway from ORLEN Group has discovered additional gas reserves near the producing Gina Krog field. The discovered additional resources (gross) are estimated to 0.8-2.6 million cubic meters oil equivalents. By using the existing production infrastructure, it will be possible to start exploitation of the new resources later this year.
"The discovery of new gas resources in the immediate vicinity of the Gina Krog field will not only allow ORLEN Group to increase natural gas production, but will also improve profitability indicators and help extend the field lifetime of the Gina Krog asset. We have a modern and well-developed production infrastructure at the site, so launching the exploitation of new resources will be possible with little investment and in a very short time. The exploitation of these resources will not lead to additional CO2 emissions because the Gina Krog field is powered by hydroelectric power from shore from September 2023. This is an example of the successful implementation of our development strategy on the Norwegian Continental Shelf, which is the key foreign market for the ORLEN Group in terms of oil and gas production development. By 2030, we plan to increase the amount of gas produced to 12 billion cubic meters per year, half of which will come from Norway. We want to achieve this target while reducing CO2 emissions per cubic meters of oil produced. Increasing the efficiency of the use of already existing infrastructure, such as in the case of Gina Krog, will contribute to this," says Daniel Obajtek, President of the Management Board of ORLEN.
The discovery of new gas resources was made at the Dougal prospect, which is located 1.5 km from the Gina Krog field. The exploration well was drilled from the Gina Krog platform using a jack-up drilling rig. This will allow production to start up as early as Q4 2023. Initially, the effect of the new well is increased oil production. Gas capacity on Gina Krog is currently fully utilized, and the gas from the new well will gradually be phased in when capacity becomes available over the next two years. Total estimated ultimate recovery from the Dougal well is between 0.8 and 2.6 million standard cubic meters oil equivalent.
The estimated remaining mean reserves in Gina Krog (gross), including the Dougal discovery are 13.0 million standard cubic meters oil equivalents. To date, 17.0 million cubic meters oil equivalents have already been extracted from the deposit.
Gina Krog is one of 19 fields currently being exploited by PGNiG Upstream Norway. The company holds interests in 90 concessions and is currently ranked as the 6th largest concession owner on the Norwegian Continental Shelf. The company's oil and gas reserves amount to more than 55 million standard cubic meters oil equivalent. In terms of reserves and production of oil and gas, PGNiG Upstream Norway ranks among the top ten companies, and in terms of gas reserves and gas production alone it ranks 8th.
In 2022, the ORLEN Group companies produced 3.5 billion cubic meters of natural gas from their Norwegian fields, which corresponded to more than 20 per cent of Poland's demand for this raw material in that year.
The operator of Gina Krog is Equinor Energy AS, which holds a 58.7 per cent interest. The other partners are KUFPEC Norway AS (30 per cent) and PGNiG Upstream Norway AS (11.3 per cent).
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