Wellesley Petroleum sells its share in DuvaLeft: Marek Woszczyk, General Manager of PGNiG Upstream Norway; Piotr Woźniak, President of PGNiG Management Board; Chris Elliott, CEO of the Wellesley Group of companies. Source: PGNiG

Wellesley Petroleum sells its share in Duva

PIGNiG acquires the 20% shares owned by Wellesley in the Duva field, North Sea, with first production expected in 2021.

The Polish company considers the Duva field as one of the most promising development projects on the NCS in recent years. It is characterized by the exceptional good quality of the reservoir rock, the Cretaceous Agat Fm turbiditic sandstones, and holds estimated reserves of 88 MMboe. The advantage of being in the proximity of existing infrastructure reduces future development and production costs.

The deal is part of PIGNiG’s strategy to increase production in Norway, consistently building its portfolio of shares in licenses on the NCS, such as the purchase of 42.4% shares in the Tommeliten Alpha field in 2018 and 22.2% shares in the King Lear field in June 2019.

PL636 was Wellesley’s first license on the NCS, with huge contributions to the exploration, discovery and development planning of Duva. However, at this stage of the project, the company has decided to take a step back and refocus their resources to mature the operated Grosbeak development project, whilst maintaining focus on the core business of exploration.

The Duva oil and gas field was discovered with the drilling of the 36/7-4 wildcat well in 2016. The well encountered a gas column of 51 m and an oil column of 60 m.

In June 2019, the Norwegian Ministry of Petroleum and Energy approved the Duva plan for Development and Operation. The field will have three production wells – two producing oil and one producing natural gas, with the potential for an additional oil well. The maximum annual production in the initial period is estimated to approx. 30 thousand boe.

The operator of the PL636 is Neptune Energy Norge (30% of shares), while the other shareholders, apart from PGNiG Upstream Norway, are Idemitsu Petroleum Norge (30%) and Pandion Energy (20%).

Location map of PL636 and the Duva field. Source Idemitsu Petroleum