Page 9 - EurOil Week 25 2021

EurOil PIPELINES & TRANSPORT EurOil

Poland to buy Russian gas for

longer after pipeline setback

POLAND DENMARK’S recent repeal of a construction PGNiG took 9bn cubic metres of gas from
permit for the Baltic Pipe project has raised the Russia last year, equivalent to around two thirds
prospect that Poland will continue relying on of Polish gas market. Poland is building a pipe-
Russian gas after its contract expires at the end line link with Lithuania and wants to expand its
of 2022. LNG capacity. But in the nearer term, the 10 bcm
Baltic Pipe is due on stream in October 2021 per year Baltic Pipe will be vital for Poland to end
and will connect Norwegian fields with the Pol- its gas relationship with Russia.
ish gas market, enabling the latter to forgo ship- For its part, Russia says it is open to remain-
ments from Russia – a political priority for the ing a supplier of Poland.
government in Warsaw. However, the Danish “Poland is our reliable counterparty with
environmental and food appeals board in early which we co-operate a lot,” Gazprom Export
June rescinded the project’s permit, over con- CEO Elena Burmistrova said last month. “We
cerns about the impact of construction on pro- operate within an economic dimension. There
tected bat and mice species. are political statements, but we keep working, we
Poland’s state-owned PGNiG has ruled out keep operating and we keep negotiating.”
entering talks with Russia’s Gazprom to procure Poland’s plan to quit Russian gas also includes
gas supplies after its contract expires in light a proposal to expand the 5 bcm per year LNG
of the likely delay at Baltic Pipe. But given that terminal in Swinoujscie to 6.2 bcm per year in
Denmark’s environment ministry has warned it 2022-2023 and 8.3 bcm per year from 2024.
could eight six to eight months for the project to There is also the 1.9 bcm per year Poland-Lith-
obtain a new licence, Warsaw may indeed have uania pipeline and, at a later stage, a 5.7 bcm per
to reach out to Moscow. year Poland-Slovakia pipeline. ™

INVESTMENT

Rex acquires first Norwegian

producing field

NORWAY SINGAPORE-BASED Rex International has Norwegian Continental Shelf [NCS], both in
reached a deal to acquire Spanish oil firm Rep- terms of cash flow and technical expertise. We
Repsol has agreed sol’s 33.84% stake in the mature producing Brage intend to work closely with the Brage operator
to cover 95% of oil and gas field off Norway for $42.6mn. and partners to maximise the value of the asset,
Lime’s share of Rex will acquire the interest through its sub- including the near-field exploration opportuni-
decommissioning costs sidiary Lime Petroleum. It expects to net 3,440 ties we see within the licences.”
at Brage. barrels of oil equivalent per day (boepd) of Lime’s existing business in Norway comprises
production through the deal and 7.3mn boe in interests in 13 exploration-stage licences.
proven and probable reserves. The company has appointed Nordic inde-
The Wintershall Dea-operated Brage field pendent investment bank ABG Sundal Collier
was discovered in 1980 and brought into pro- as a financial advisory for a contemplated 2.5-
duction in 1993. Although it is now mature, year secured bond issue of up to NOK500mn
Lime believes recovery can be increased using ($61mn) for Lime.
infill drilling. Exploration in the area surround- These funds will be used to finance explora-
ing the field represents additional upside, Lime tion and capital expenditure. ™
said.
What is more, Repsol has agreed to cover 95%
of Lime’s share of decommissioning costs once
Brage is eventually closed down.
“The Brage field will be transformational
to the company,” Lime CEO Lars Hubert com-
mented. “It will not only provide stable cash flow
to Lime Petroleum but will complement our
exploration and development projects on the

Week 25 24•June•2021 www. NEWSBASE .com P9