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Foreign operations


PGNiG UN holds interests in exploratory and production licences on the Norwegian Continental Shelf, in the Norwegian Sea, in the North Sea and in the Barents Sea. Jointly with partners, the company has been producing hydrocarbons from the Skarv, Morvin, Vilje and Vale fields and working on the development of the Snadd and Gina Krog fields. In the other licence areas, the company is engaged in exploration projects. The company’s main asset is the Skarv field, which has been developed using a floating production, storage and offloading (FPSO) vessel. The FPSO is owned by the licence holders, including PGNiG UN, and is expected to continue is operations for the next 20 years. The other fields (Morvin, Vilje and Vale) comprise a group of wells connected to the existing production infrastructure. In 2016, the company produced a total of 555 thousand tonnes of crude oil with condensate and NGL (measured as tonnes of crude oil equivalent) and 517 mcm of natural gas from the Skarv, Morvin, Vilje and Vale fields. Production from the deposits was higher than initially planned. Greater output was achieved mainly thanks to the high efficiency of the production facilities. In addition, the larger output from the Skarv field was achieved through the use of a technique of injecting natural gas into the deposit to improve oil recovery. In 2016, PGNiG UN and its partners continued the development of the Gina Krog and Snadd fields. In the Gina Krog field, exploration wells were being drilled. The Samsung shipyard in South Korea completed the construction of components of surface infrastructure for receiving oil and gas, which were subsequently transported to Norway and installed over the Gina Krog field. The field is now being prepared for production launch, which is scheduled for 2017. In 2016, a development concept for the Snadd field was selected. The preferred scenario provides for drilling three new production wells and launch of production in 2020. Jointly with its partners, PGNiG UN also continued work on its other exploration licence areas. For example, the company was evaluating the prospectivity of the PL702, PL703, PL707, PL756 and PL799 licence areas. Based on the results of geological and economic analyses, a decision was made to relinquish the PL702, PL707, PL756 and PL799 licences, with no wells drilled.

Floating Production, Storage nad Offloading Unit - a floating vessel used for offshore production of hydrocarbons, and for storage and offloading of the produced oil

In 2016, further APA 2015 rounds (Awards in Pre-defined Areas) and the 23rd Licence Round were concluded; PGNiG UN was awarded interests in five new exploration licences. Within two to three years, the licence partners will perform geological and geophysical investigations allowing them to make precise estimates of the hydrocarbon potential of the licences. After that period, drill-or-drop decisions will be made. As at December 31st, 2016, PGNiG UN held interests in 17 exploration and production licences on the Norwegian Continental Shelf, in two of them as the operator. On January 17th, 2017, PGNiG UN was awarded two more licences by the Norwegian government in the APA 2016 round and granted operatorship of one of them. The licence partners were given two years to acquire seismic data and carry out geological and geophysical surveys, with drill-or-drop decisions due afterwards. The awarded licences have significant gas potential, which fits in with plans envisaging gas imports from Norway to Poland. Both licences are located close to existing production and pipeline infrastructure, which will make project work much simpler and faster.

Awards in Predefined Areas                                
See also:
Skarv and Snadd
PGNiG’s interest 11.92%
Partners AkerBP (Operator 24%), Statoil (36%), EON (28%)
Reserves as at end of the year 51.1mm boe (net for PGNiG UN)
2016 output 14.2 thousand boe (net for PGNiG UN)
PGNiG’s interest 6%
Partners Statoil (Operator 64%), Eni (30%)
Reserves as at end of the year 1.8mm boe (net for PGNiG UN)
2016 output 1.2 thousand. boe (net for PGNiG UN)
PGNiG’s interest 24.24%
Partners Lotos (25.8%)
Reserves as at end of the year 2.3mm boe (net for PGNiG UN)
2016 output 1.4 thousand boe (net for PGNiG UN)
PGNiG’s interest 24.24%
Partners AkerBP (Operator 47%), Statoil (29%)
Reserves as at end of the year 4.6mm boe (net for PGNiG UN)
2016 output 3.4 thousand. boe (net for PGNiG UN)
Gina Krog
PGNiG’s interest 8%
Partners Statoil (Operator 58.7%), Total (15%), KUFPEC (15%), AkerBP (3.3%)
Reserves as at end of the year 18.3mm boe (net for PGNiG UN)
2016 output Planned to be launched in 2017
Barrel of oil equivalent (1 barrel is uqal to approximately 0.136 tonnes or 159 litres)

Crude oil is sold directly from the fields to Shell International Trading and Shipping Company Ltd (from the Skarv, Vilje and Vale fields) and to TOTSA Total Oil Trading S.A. (from the Morvin field). All fields except for Vilje also produce associated gas, which is transferred via a gas pipeline mainly to Germany, where it is collected by PGNiG Supply & Trading GmbH. PGNiG UN’s key sales markets are Norway, Germany and the UK.

For more on PGNiG Supply & Trading, see chapter Trade and Storage

PGNiG UN’s license portfolio in January 2017:


PGNiG is engaged in exploration work in Pakistan under an agreement for hydrocarbon exploration and production in the Kirthar licence area executed between PGNiG and the government of Pakistan on May 18th, 2005. Work in the Kirthar block is conducted jointly with Pakistan Petroleum Ltd. (PPL), with production and expenses shared proportionately to the parties’ interests in the licence: PGNiG (operator) – 70%, PPL – 30%. Exploration activities within the licence area have resulted in the discovery of two gas deposits − Rehman and Rizq. Natural gas reserves: 11.3 bcm (Rehman) and 3.8 bcm (Rizq) In line with the concept providing for simultaneous development of the Rehman and Rizq fields, the drilling of Rehman-2 was completed in November 2016, with Rehman-3 spudded on November 17th. 2016 saw further progress in the construction of pipeline infrastructure, which was used to enable production from Rizq-1 as of November 7th. Rizq-1 is producing natural gas as part of an extended well testing programme and the gas is sold to the Pakistani gas system. The same pipeline will be used to make the Rehman-2 well available for production. Gas from the Rehman and Rizq fields is produced via facilities located in the Rehman field. In mid-2016, preparatory work began for drilling four new wells (two production wells, one appraisal well and one exploration well). As part of further exploration and documentation work, work on a new 3D seismic survey was completed. The Company also continued production from the Rehman-1 and Hallel X-1 wells. In 2017 in Pakistan, PGNiG will continue drilling the Rehman-3 well and will commence drilling the Rehman-4 and Rizq-2 wells. In the following years, under the Kirthar licence, the Company will perform work to gradually expand the capacity of the production installations; further drilling work will also be performed on the Rehman and Rizq fields. In addition, PGNiG plans to continue exploration work within three potential fields: N2, W1 and W2. PGNiG is seeking to secure an exploration licence in the Baran Block, adjacent to the Kirthar licence area.


Due to a rapid deterioration of the security situation in Libya in mid-2014, on August 12th, 2014 POGC Libya gave notice of a force majeure to the National Oil Corporation (NOC) and started to scale back its operations in the country. In November 2015, POGC-Libya entered into an Interim Agreement with NOC, under which the parties agreed that the EPSA will not expire even if the force majeure continues for more than two years after its notification. In 2016, steps were taken to stabilise the situation in Libya by engaging the international community in coordinating the peace process aimed at electing a new unity government. Throughout 2016, POGC Libya made efforts to reduce the impact of the force majeure on the project. The efforts were pre-approved by NOC and involved analysing seismic data and verifying the prospectivity of the LC113 licence.

Exploration and Production Sharing Agreement - agreement concluded in 2008 between POGC Libya and the Government of Libya for exploration work in the Murzuq petroleum basin in Libya (license No. 113)


Work was continued within a subdivision of the Lubben licence area in east Germany (Brandenburg) under a joint operations agreement of August 4th, 2015. PGNiG’s (36% interest) project partners are Central European Petroleum Gmbh (39% interest and operatorship) and Austria’s Rohöl-Aufsuchungs AG (25% interest). In the first half of 2016, drilling of the Markische Heide-1 exploration well was completed and the acquired data was analysed to identify a potential prospect. Given major differences in the interpretation of seismic data and the increased exploration risk, PGNiG decided to withdraw from the project.


On November 5th, 2016, a Memorandum of Understanding and a Confidentiality Agreement were signed with National Iranian Oil Company (NIOC) concerning joint operations on the Soumar oilfield owned by NIOC’s subsidiary Iranian Central Oil Fields Company. By the end of March 2017, PGNiG is to prepare a development concept for the field based on data supplied by its Iranian partner. After the concept is approved by NIOC and a relevant consent is secured, the parties will be able to proceed to negotiate a potential contract. In Teheran PGNiG SA and National Iranian Oil Company signed a letter of intent concerning their collaboration on the Soumar oil field, with in-place resources put at approximately 475 mm boe.

Seismic surveys

In 2016, seismic data acquisition was carried out by PGNiG Group in Hungary, Italy, Algeria, Mozambique, Tunisia, Egypt and Morocco. Processing and interpretation activities were conducted in Gabon, Germany, France, Belgium, Italy, Algeria, Switzerland, Pakistan, India, Spain and Columbia. In 2016, the Group also worked on projects related to well logging and measurement of gas drilling parameters in Germany.