Polish Orlen to boost gas production in the Norwegian Sea. New field discovery to increase supplies to the European Union

Polish energy company Orlen Group will increase its natural gas production in Europe. Last week, it announced that it had discovered new gas resources in the Norwegian Sea together with its license partners through its subsidiary PGNiG Upstream Norway.

The additional resources discovered are estimated at 0,8-2,6 million cubic metres of oil equivalent. The company said in a press release that, thanks to the possibility of using existing production infrastructure, production from the new fields can begin this year.

"The discovery of new gas resources in the immediate vicinity of the Gina Krog field will not only enable the ORLEN Group to increase natural gas production, but will also improve profitability and help extend the life of the Gina Krog field," said Daniel Obajtek, CEO of ORLEN.

The new gas reserves were discovered in the Dougal field, located 1,5 km from the Gina Krog field. This will make it possible to start production as early as the fourth quarter of 2023.

The gas processing capacity on the Gina Krog platform is currently fully utilised, and gas from the new well will be produced gradually as capacity becomes available over the next two years. The total estimated ultimate production from the Dougal field is between 0,8 and 2,6 million cubic metres of oil equivalent.

As Obajtek added, Orlen wants to increase its gas production to 12 billion cubic metres per year by 2030, half of which will come from Norway. The company wants to achieve this target while reducing CO2 emissions per cubic metre of oil produced. More efficient use of existing infrastructure, as in the case of Gina Krog, will contribute to this.

In 2022, the company produced approximately 3,5 billion m3 of natural gas from its Norwegian fields, equivalent to more than 20% of Poland's gas consumption this year.

Orlen has long been criticised for its lukewarm approach to addressing issues related to the climate crisis. In June 2023, Greenpeace named it as one of the "Dirty Dozen" companies—those that continue to increase their oil and natural gas production.