PGNiG subsidiary to buy Equinor’s interest in Tommeliten discovery

19 October 2018 (Last Updated October 22nd, 2018 14:58)

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 subsidiary to buy Equinor’s interest in Tommeliten discovery
The Tommeliten discovery is expected to start production in 2024. Credit: Equinor ASA.

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.

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.