Equinor Sells 19.5% Stake in Two Norwegian Production Licenses to PGNiG Upstream Norway

Norwegian state-owned energy giant Equinor has agreed to divest a 19.5% stake in two production licenses, PL 048E and PL 1201, to PGNiG Upstream Norway, a subsidiary of Poland's Orlen Group. The licenses include the Eirin field, located 250 kilometers west of Stavanger, Norway.

The deal aims to balance the ownership stakes between Equinor and PGNiG in these licenses, mirroring their partnership in the Gina Krog field. The plan for the development and operation (PDO) of the Eirin field was approved in January 2024, with the subsea template currently under construction in Egersund and scheduled for installation in the summer of 2024.

This deal has broader implications for the europe energy sector, as it balances ownership stakes between Equinor and PGNiG in these licenses. The transaction's outcome may influence future partnerships and investments in the region, shaping the energy sector in Norway and beyond.

The Eirin field will be developed as a subsea facility tied back to the Gina Krog platform. Volumes from Eirin will be processed at Gina Krog, with condensate exported to the Sleipner A platform via a new pipeline currently under construction. Gas will be transported to Sleipner A for further processing, with sales gas exported via Gassled to the market. Unstabilized condensate will be sent to the Kårstø terminal.

Equinor's Senior Vice President for Late-life Fields, Camilla Salthe, commented on the transaction: "Balanced partnerships will make it easier to coordinate decisions in the licences to optimise production and enhance value creation from the area. Together with the electrification of the platform, the Eirin development will extend the lifetime of the Gina Krog field, which supplies gas to Europe with low emissions from production and transport."

Production license PL 1201, awarded in this year's Awards in Predefined Areas (APA), could utilize Eirin's infrastructure for any future discoveries, potentially tying them back to the Gina Krog platform. The economic effective date for the transfers is January 1, 2024, and the closing of the transaction is conditional upon ministry approval.

The Eirin field, discovered in 1978, is located at a depth of 4,000 meters and will be developed as a subsea tieback to the Gina Krog platform. The electrification of the Sleipner field center and activities at the Gudrun platform will help curb Equinor's emissions from operations on the Norwegian Continental Shelf (NCS). Production from Eirin and Gina Krog is expected to have low emissions, estimated at 3 kilograms of CO2 per barrel of oil equivalent.

This transaction is part of Equinor's broader strategy to optimize its portfolio and enhance value creation from its assets. It also aligns with the company's commitment to reducing emissions and ensuring sustainable production.

Key Takeaways

• Equinor sells 19.5% stake in two North Sea production licenses to PGNiG Upstream Norway.
• The licenses include the Eirin field, located 250 km west of Stavanger, Norway.
• The deal balances ownership stakes between Equinor and PGNiG, mirroring their Gina Krog field partnership.
• The Eirin field will be developed as a subsea facility tied back to the Gina Krog platform.
• Production from Eirin and Gina Krog is expected to have low emissions, estimated at 3 kg CO2 per barrel of oil equivalent.