Polish PGNiG will buy shares in Norwegian fields

PGNiG Upstream Norway (PUN), a subsidiary of Polish state-owned PGNiG, will acquire stakes in the Kvitebjorn and Valemon fields in the North Sea, Enkorr reports.

The seller will be Norske Shell. As a result of the transaction, PGNiG's gas production in Norway in 2021 will increase by 45% compared to the previous year (900 million cubic meters).

PUN will receive 6.45% in the Kvitebjorn project and 3.225% in Valemon field. The deal must be approved by Norwegian regulators. PUN is currently operating in seven oil and gas fields in Norway. Gas will be supplied to Poland via Baltic Pipe after its launch.

The Baltic Pipe project is part of Poland's strategy to reduce its energy dependence on Russia. The capacity of the pipe should be 10 billion cubic meters. The Baltic Pipe will be 275 km long and will run through the territorial waters of Denmark, Poland and the Swedish exclusive economic zone.

Earlier it was reported that PGNiG bought stakes in two more gas fields in Norway.

Tags: contracts, hydrocarbon production, legislation, EU, energy market, gas production, GTS, Gas processing plant, foreign affairs, Gas market, negotiations, investments, pipeline, price, agreement, gas supplies, volumes, well, field, infrastructure, Poland, energy sector, natural gas, economy, gas transmission system

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