ORLEN Group’s PGNiG Upstream Norway Discovers Significant Increase in Øst Frigg Field Reserves

(IN BRIEF) PGNiG Upstream Norway, a subsidiary of the ORLEN Group, has announced a significant increase in the estimated oil reserves of the Øst Frigg Beta/Epsilon discovery. The field may contain twice as much oil as previously assumed, with recoverable reserves ranging from 40 to 90 million barrels of oil equivalent (boe). This discovery contributes to the Yggdrasil development project, one of the largest projects on the Norwegian Continental Shelf. The ORLEN Group holds an interest in the Yggdrasil development and plans to utilize the project’s infrastructure for the additional resources. The integration of LOTOS Exploration & Production Norge’s assets will enhance the efficiency of the ORLEN Group’s operations.

(PRESS RELEASE) PŁOCK, 26-May-2023 — /EuropaWire/ —  PKN ORLEN (WSE: PKN), a Polish oil refiner and petrol retailer, announces that its subsidiary, PGNiG Upstream Norway, has unveiled a substantial increase in the estimated oil reserves of the Øst Frigg Beta/Epsilon discovery. The recent exploration results indicate that the field may contain at least twice as much recoverable oil as previously assumed, with reserves ranging from 40 to 90 million barrels of oil equivalent (boe). This discovery significantly bolsters the total resources of the Yggdrasil development project, one of the largest ongoing projects on the Norwegian Continental Shelf, in which the ORLEN Group is a partner.

“The preliminary results of the exploration well drilled in Øst Frigg field has turned out to be much better than expected. The additional oil resources will strengthen the ORLEN Group’s position as one of the leading players on the Norwegian Continental Shelf “– says Daniel Obajtek, CEO of PKN ORLEN. The company is the sole owner of PGNiG Upstream Norway.

Located in concessions PL873 and PL442, Øst Frigg field’s reserves were previously estimated at 18-45 million boe. However, the latest findings suggest that the actual recoverable reserves could exceed 90 million boe, increasing the ORLEN Group’s share to 5-11 million boe. Precise estimates of the field’s resources are pending further analysis, subject to confirmation by the Norwegian Petroleum Directorate.

The Øst Frigg field is one of eight fields being developed as part of the Yggdrasil project, formerly known as NOAKA. With a total investment of 115 billion NOK (approximately 45 billion PLN), Yggdrasil is currently one of the most significant investments on the Norwegian Continental Shelf. The ORLEN Group holds an almost 13% interest in the eight licenses within the Yggdrasil area, benefiting from tax incentives under a temporary tax regime in Norway.

The additional resources from Øst Frigg Beta/Epsilon substantially increase the projected oil volume attributed to the ORLEN Group in the Yggdrasil project, estimated to be around 31 million boe of crude oil and condensate. These additional resources will be integrated into the planned infrastructure of the Yggdrasil project, ensuring a high profitability potential for the discovery.

PGNiG Upstream Norway’s partners in license PL873 are Aker BP (47.7 percent, operator) and Equinor (40 percent), while in license PL442, Aker BP operates with an 87.7 percent stake. In December 2022, the license partners submitted a development and operation plan for the Yggdrasil area to the Norwegian administration, with production expected to commence in early 2027.

The Yggdrasil project was originally prepared by LOTOS Exploration & Production Norge, whose assets were acquired by PGNiG Upstream Norway in May of this year as part of the ORLEN Group’s upstream operations consolidation on the Norwegian Continental Shelf. This integration aims to enhance operational efficiency across the ORLEN Group’s operations.

Media contact:
media@orlen.pl

SOURCE: PKN ORLEN