ORLEN Group with 12 new licenses on the Norwegian Continental Shelf
PGNiG Upstream Norway AS (PUN) has obtained ten new license areas for exploration on the Norwegian Continental Shelf as a result of Awards in Predefined Areas (APA) for 2023. In total, 25 oil companies from all over the world applied. PUN will act as the operator of one of the ten newly awarded licenses. It should be noted as well that through the purchase of KUFPEC Norway AS, PUN will ultimately inherit two additional new license areas around the Sleipner Field. As a result, the number of licenses in Norway, in which PUN, the company of the ORLEN Group, holds shares, will increase to 104.
“The latest licensing round on the Norwegian Continental Shelf confirms the ORLEN Group's strong position on the Norwegian market. This is the largest number of licenses that PGNiG Upstream Norway has ever received in APA procedure. The development of our portfolio of Norwegian assets is crucial for the achievement of ORLEN's business goals, but also for ensuring energy security of our customers," said Daniel Obajtek, President of the Management Board of ORLEN.
As a result of the annual licensing round (APA 2023), the Norwegian government finally granted shares in 62 production licenses to 24 companies. PUN applied for shares in ten licenses and succeeded in receiving ten.
Four of the newly awarded licenses are located in the Norwegian Sea. PUN will act as the operator for one of them. PUN will hold 70% shares in PL1220 and act as operator, the remaining shares will belong to Equinor. The three other license applications from PUN concerned areas close to infrastructure in which PUN hold shares, and thus extends PUN’s current footprint in the area. PUN will obtain 20% shares in PL1230 where AkerBP will be the operator with 40% equity, 20% in PL1229 where Sval will be the operator with 30% equity and 10% in PL211DS where Wintershall DEA will be the operator with 40%. Several of these licenses are located near the Skarv Field, from which PUN's operations in Norway began.
Six of the newly awarded licenses are located in the Norwegian North Sea. Five are located close to development projects in which PUN hold shares. PUN will be awarded 12.3% of shares in PL873B, PL873C and PL1206S, all operated by AkerBP and close to the Yggdrasil development. In addition, PUN will obtain 30% and 22.2% of shares in PL1199 and PL1088B, both operated by AkerBP and close to the Fenris development. Finally, PUN will also be awarded 30% shares in PL1101B where OMV will be the operator with 40% equity.
Following the announcement of the Awards in Predefined Areas for 2023, the Norwegian government will formally offer oil companies ownership in the licenses they applied for and issue the license documents for signature.
