Gas firm PGNiG receives consent to exploit Skogul deposit in North Sea

“In the extraction process from Skogul we will use infrastructure already existing on a neighbouring deposit, which is of great importance to reducing exploitation costs,” PGNiG quoted CEO Jerzy Kwieciński as saying. Mateusz Marek/PAP

The Norwegian Petroleum Directorate has granted formal consent to Polish gas monopolist PGNiG to start drilling for oil and gas in the North Sea's PL460 concession, or Skogul deposit, PGNiG announced in a Tuesday press release.

PGNiG has a 35-percent share in the Skogul deposit through its subsidiary, PGNiG Upstream Norway. Production is planned to start in March.

"A formal permit from the Norwegian administration is good information," PGNiG quoted CEO Jerzy Kwieciński as saying. "It means that, in line with our plans, we will be able to commence exploitation of a further deposit on the Norwegian Continental Shelf. In the extraction process from Skogul we will use infrastructure already existing on a neighbouring deposit, which is of great importance to reducing exploitation costs. Launching production means additional income, which will support the results achieved already this year by our Norwegian firm."

The owner of the remaining shares and operator of the concession is the Aker BP company, from which PGNiG bought shares in 2017. The deposit was discovered in 2010. Skogul's hydrocarbon reserves falling to PGNiG Upstream Norway stand at about 3.3 million boe (barrel of oil equivalent).

PGNiG has been active in Norway since 2007. PGNiG Upstream Norway currently holds shares in 29 concessions on the Norwegian Continental Shelf. PGNiG currently extracts crude oil and natural gas from five deposits in Norway with investment and analytical work ongoing on a further six. In addition to launching production at Skogul, production is also planned to start this year at the Aerfugl deposit.