The value of the agreement, estimated on the basis of forecasted crude oil sales over the next five years, amounts to USD 1.1bn (approx. PLN 3.5bn computed based on the PLN/USD mid-exchange rate quoted by the National Bank of Poland for October 20^th, 2011)

Under the agreement PGNiG Norway will sell its entitlement of crude oil produced from the Skarv field to Shell.

The price of crude oil will be based on Brent quotations and payments for the delivered crude oil will be settled in US Dollars.

The agreement was concluded for an indefinite period, which commences the month of production start-up, and has a minimum period of 12 months.

The development of the Skarv field is the largest investment project currently implemented in Norway. It is also the first foreign project of the PGNiG Group, expected to deliver measurable economic benefits.

In 2012 production of natural gas from the field is estimated at about 240 mm cubic meters, while production of crude oil is estimated at about 250 thousand tonnes.

Through PGNiG Norway, PGNiG SA holds an approximately 12% interest in the Skarv project. The field is operated by BP (24% interest), and the other partners are Statoil (approximately 36%) and E.ON Ruhrgas (approximately 28%). PGNiG is cooperating with these companies also under other licenses. The overall reserves on concessions covering the Skarv field, owned by PGNiG Norway, are estimated at 70.9 mm barrels of oil equivalent.

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 and its share capital amounts to NOK 951m. PGNiG Norway holds interests in eight exploration and production licenses on the Norwegian Continental Shelf. Its main asset is the interest in the Skarv field.

Press Team

PGNiG SA