Norway: Skarv Production Put Off for Q4 2012

PGNiG Norway, a subsidiary of Polskie Górnictwo Naftowe i Gazownictwo SA, was notified by BP, the operator of the Skarv project, of postponement of oil and gas production on the Norwegian Continental Shelf from Q2 2012 to Q4 2012. The postponement is caused by a delay in installation of risers due to adverse weather conditions on the Norwegian Sea.

Although the licence operator kept the riser installation vessel on standby at the field throughout the winter, from November to March there were no spells of good weather long enough to permit installation of the risers. Connection of the 13 risers to the FPSO vessel requires at least three days each, during which the wave height cannot exceed two metres.

As a result of the postponement, the 2012 forecast of hydrocarbons production from foreign fields has been revised from 0.3bn cubic metres to 0.1bn cubic metres of gas (production in Pakistan), and from 180 thousand tonnes to 0 thousand tonnes of crude. However, the guidance may be subject to change.

The forecasts for production from foreign fields in 2013, as well as forecasts for domestic production in 2012 and 2013 remain unchanged. In 2013, PGNiG SA expects to produce 4.9bn cubic metres of gas and 1.24m tonnes of crude oil. The forecast for domestic production is 4.4bn cubic metres of gas in 2012 and 2013, while crude oil production is expected to increase to 750 thousand tonnes in 2013, from 480 thousand tonnes in 2012.

Through PGNiG Norway, PGNiG SA holds an approximately 12% interest in the Skarv project. The field is operated by BP Norge (24% interest), and the other partners are Statoil Petroleum (approximately 36%) and E.ON Ruhrgas Norge (approximately 28%). PGNiG cooperates with these companies also on other licences. At present, total reserves in the Skarv licenses held by PGNiG Norway amount to approximately 70.9 million boe.

The exploration and production activities on the Norwegian Continental Shelf are managed by PGNiG Norway. The company, established in 2007, is wholly owned by PGNiG SA; its share capital amounts to NOK 951m. PGNiG Norway holds interests in 12 exploration and production licences on the Norwegian Continental Shelf. Its main asset is the interest in the Skarv field.

[mappress]
Source: PGNiG, April 25, 2012