Poland's Orlen awarded new oil and gas licences in Norway
Poland's leading oil and gas company Orlen, through its subsidiary Orlen Upstream Norway, has been offered stakes in six new oil and gas exploration and production licenses by the Norwegian Ministry of Energy, Orlen has said.
The decision is part of a broader annual APA [Awards in Predefined Areas] licensing round for mature areas on the Norwegian Continental Shelf, announced by the Norwegian government on Tuesday.
As in previous years, Orlen submitted applications for shares in areas close to its existing assets. This strategy enables the company to leverage its existing infrastructure for the potential development of new resources, thereby reducing investment costs and project timelines, Orlen said in a press release on Tuesday.
The licenses offered to Orlen Upstream Norway are located near the Skarv, Vilje, Yme, and Yggdrasil fields. Not all of them are targeting new exploration, the announcement read.
One, the Victoria licence near the Skarv field, covers an area where significant tight gas resources, estimated at up to 140 billion cubic meters in-place, were discovered in 2000. The former shareholders of the Victoria discovery relinquished the license after drilling an appraisal well in 2009, citing challenging reservoir properties and a lack of profitability given the level of technology available at the time.
However, it was added that Orlen Upstream Norway, in its joint venture with Aker BP, Equinor and Harbour Energy, believes that achieving economic production rates from Victoria may now be possible thanks to technological advancements.
Orlen Upstream Norway has received an offer to acquire a 20 percent stake in the licence covering the Victoria field. Aker BP will be the operator.
Wieslaw Prugar, Orlen Management Board Member for Upstream, said, as cited in the press release, that Victoria is one of the largest undeveloped gas discoveries on the Norwegian Shelf. "If the revitalised approach to Victoria of our joint venture is successful, this would enable access to other unconventional gas discoveries currently stranded on the Norwegian Continental Shelf, whose combined in-place resources are estimated at over 800 billion cubic meters of gas."
In the latest APA round, Norway allocated 57 licenses, with offers extended to 19 companies. Formal license awards will be finalised in March. Currently, Orlen Upstream Norway holds interests in 94 licenses. (PAP)
mmr/jch
