ORLEN Group acquires stake in Atlantis field on Norwegian Continental Shelf
ORLEN Group will become a license partner in one of the five largest discoveries made on the Norwegian Continental Shelf in the last 10 years. As a result of a sales and purchase agreement signed with Source Energy, PGNiG Upstream Norway will obtain 20% stake in the Atlantis field in the North Sea. By acquiring the equity in Atlantis ORLEN Group is looking to maintain long term stability and high volumes of its gas production in Norway, which will be delivered to Poland via the Baltic Pipe.
The acquisition of a stake in the Atlantis field will provide PGNiG Upstream Norway of the ORLEN Group with 13 million barrels of oil equivalent, including 1.5 bn cubic meters of natural gas – according to the data published by the Norwegian Ministry of Energy. The license partners plan to develop Atlantis over the next few years.
“ORLEN Group’s investment in the Atlantis field represents our consistent strategic effort to secure natural gas supplies to the Polish gas system. This is a project with above-average economic efficiency. Further diversification of our project portfolio in Norway provides a strong and stable basis for ORLEN's upstream business,” said Ireneusz Fąfara, CEO of ORLEN.
The Atlantis field was discovered in 2020. Its total recoverable reserves are estimated at 65 million barrels of oil equivalent, with upside potential. This puts Atlantis among the largest discoveries made on the Norwegian Continental Shelf in the last decade.
The purchase of interests in Atlantis is subject to an approval of the Norwegian Ministry of Energy. Once the transaction is completed, PGNiG Upstream Norway will have 20% stake of the field, with the remainder being held by Equinor, which is also the license operator.
The license partners consider several options to develop Atlantis, including a subsea tieback to the platform at the Kvitebjørn field (in which PGNiG Upstream Norway holds 6.45 percent stake and Equinor is the operator) or to the Oseberg field platform (which is also operated by Equinor). Developing Atlantis with existing infrastructure will limit the costs of production launch and reduce the CO2 intensity of its operation.
The area around Atlantis is currently under active exploration. If further discoveries are made, they might be incorporated into Atlantis development concept, hence improving operational and financial efficiency of the asset.
