Polish gas giant PGNiG discovers light oil in Norwegian Sea

PGNiG Upstream Norway, a subsidiary of Polish Oil and Gas Company (PGNiG), has discovered a 19-63-million-barrel crude oil deposit at the Egyptian Vulture exploration well in the Norwegian Sea, the company said in a Tuesday press release.

"PGNiG Upstream Norway and its licence partners have discovered a hydrocarbon reservoir in its PL939 licence located in the southern part of the Norwegian Sea," the statement read.

"The samples indicate a light oil, whose recoverable resources - according to the estimates released by the Norwegian Petroleum Directorate – are between 19 to 63 million barrels," it added.

"The Egyptian Vulture reservoir will be a valuable addition to our production portfolio on the Norwegian Continental Shelf," PGNiG CEO Paweł Majewski said as cited in the press release.

"Natural gas remains at the core of PGNiG's business strategy, however crude oil production allows us to diversify and optimise our operations in this region," Majewski added.

Data and samples gathered during the exploration phase will be analysed for further appraisal of the discovery, PGNiG said in the press release. Tie back to existing fields in the area will be evaluated in order to assess potential production from the discovery, the company added.

PGNiG Upstream Norway holds shares in 58 licences on the Norwegian Continental Shelf. The company estimates that next year its production volume will increase to over 2.5 bcm of natural gas, compared to over 0.9 bcm projected for 2021. Currently, PGNiG Upstream Norway produces oil and gas from 14 fields.