Receive our newsletter – data, insights and analysis delivered to you
  1. News
October 19, 2018updated 22 Oct 2018 2:58pm

PGNiG subsidiary to buy Equinor’s interest in Tommeliten discovery

PGNiG Upstream Norway has signed a $220m agreement to acquire Equinor’s non-operated interests in the Tommeliten gas and condensate discovery on the Norwegian Continental Shelf (NCS).

PGNiG Upstream Norway has signed a $220m agreement to acquire Equinor’s non-operated interests in the Tommeliten gas and condensate discovery on the Norwegian Continental Shelf (NCS).

The transaction will give a 42.38% interest in the Tommeliten Unit (PL 044 TA) and a 30% interest in PL 044. Tommeliten Alpha is estimated to have net recoverable resources of 52 million barrels of oil equivalent.

The discovery is near the Ekofisk field and the acquisition marks PGNiG’s first activities in the area.

PGNiG management board president Piotr Woźniak said: “It means a significant increase in natural gas production in the region. It is from here that we plan to send gas to Poland via Denmark through planned Baltic Pipe pipeline.

“The Tommeliten Alpha project allows us to implement our diversification strategy at attractive financial terms.”

“It is from here that we plan to send gas to Poland via Denmark through planned Baltic Pipe pipeline.”

The company expects the acquisition to increase gas production in Norway by 500 million cubic metres per annum in the first six years of production. The Tommeliten discovery is expected to begin production in 2024.

Content from our partners
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager
The important role of antifoam agents in oil-gas separation and amine treating

Based on the development plan, the field will be tied-back to the existing infrastructure on Ekofisk.

Other stakeholders in the discovery include ConocoPhilips (28.26%, operator), Total (20.23%), and Eni Norge (9.13%).

Equinor southern North Sea Operations senior vice-president Jez Averty said: “Equinor is committed to transforming the Norwegian Continental Shelf for decades to come. Realising this ambition requires prioritisation. We are selling this asset, so we can direct our efforts towards priority projects and assets that create higher value for us.”

Completion of the transaction is subject to customary closing conditions.

The proposed sale comes days after Equinor agreed to sell its operated interest in the King Lear discovery to Aker.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU