Final investment decisions on development of oil and gas discoveries on the Norwegian shelf

PKN ORLEN S.A. (“Company”, “PKN ORLEN”) informs that on 12 December 2022 LOTOS Exploration & Production Norge AS („LOTOS Norge”) together with its partners: Aker BP ASA („Aker BP”) and Equinor Energy AS (“Equinor”) have made a final investment decision to develop oil and gas discoveries on the Norwegian shelf: North of Alvheim and Fulla (within “the NOAKA Project”). The share of LOTOS Norge in the areas amounts to 12.3% and AkerBP is the operator. 

LOTOS Norge’s equity involvement in the NOAKA Project is proportional to its share in North of Alvheim and Fulla within the project and amounts up to NOK 2.3 bn. The extractable resources attributable to LOTOS Norge are estimated at the level of ca. 39 million barrels of oil equivalent.

Moreover on 12 December 2022 PGNiG Upstream Norway AS („PGNiG Norway”) together with its partners: Aker BP ASA („Aker BP”), Equinor and WintershalDEA have made a final investment decision to develop oil and gas discoveries on the Norwegian shelf: Fenris (PGNiG Norway share amounts to 22.2%), Ørn (PGNiG Norway share amounts to 40.0%) and Alve Nord (PGNiG Norway share amounts to 11.9%). AkerBP is the operator of all the areas and total extractable resources attributable to PGNiG Norway are estimated at the level of 65.3 million barrels of oil equivalent. PGNiG Norway’s equity involvement in the projects is proportional to its share in the areas within the project and amounts to ca. NOK 2.8 bn.

Start of the production of hydrocarbons on both projects is planned for 2027. The work will start under the condition that the Norwegian Parliament sanctions the plans for development and operation of the areas. PKN ORLEN holds 100% of shares in LOTOS Norge and in PGNiG Norway.