The approval of the Yggdrasil area project by the Norwegian parliament gives Polish energy giant, PKN Orlen, access to over 30 million barrels of oil and 2 billion cubic meters of natural gas, according to CEO Daniel Obajtek.
The Yggdrasil project will see the development of oil and gas discoveries between the Oseberg and Alvheim fields located in the North Sea. The plans mark a significant milestone for the PKN Orlen Group, which holds a nearly 13 percent share in the project.
Obajtek emphasized the strategic importance of the Norwegian shelf for Orlen’s extraction endeavors, stating that it will enhance regional resource autonomy. PKN Orlen also announced that it is launching a new project on the Norwegian shelf.
“The Norwegian shelf is a strategic direction for the development of our extraction (activities),” Obajtek tweeted. He added that the company’s involvement in the Yggdrasil project will strengthen its position among the largest extraction companies in the region.
The project was prepared by Lotos Exploration & Production Norge, whose assets were acquired by PKN Orlen Group’s PGNiG Upstream Norway (PUN) in May of this year as part of the consolidation of Orlen’s extraction activities on the Norwegian shelf.
The project encompasses the development of eight deposits, including the promising Ost Frigg deposit. It is a major investment on the Norwegian shelf valued at around 115 billion Norwegian kroner (€10 billion).
The Ost Frigg deposit, with a 12.3 percent stake held by PUN, is estimated to contain 18-45 million barrels of oil equivalent (BOE). Recent estimates indicate that the deposit may contain twice as much crude oil as previously anticipated, reinforcing Orlen’s position in the extraction sector.
PKN Orlen, Poland’s largest company, is a joint-stock company with the State Treasury holding a 49.9 percent stake. It operates seven refineries in Poland, the Czech Republic, and Lithuania, in addition to approximately 3,100 fuel stations across multiple countries including Poland, Germany, Czechia, Slovakia, Lithuania and Hungary.
The company has a global presence in over 100 markets with a strategic focus on Central Europe, Norway, Canada and the Middle East.