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calls,” Prime Minister Andrej Plenkovic Shelf to its portfolio. target set in 2017.
was quoted by N1 as saying following the The deal is worth about $410 million In the UK North Sea, operators receive
government’s phone session. Canadian dollars, gross, according to tax breaks on their decommissioning
The retail price of petrol will be HRK12 Suncor, and is expected to complete in Q4 spending, which means this cost partly
(€1.59) per litre, while the price of diesel will this year, with an effective date of March 1, falls on tax payers. This has meant it’s
be set at HRK12.8 per litre. 2022. become a focus area for the NSTA. In 2017,
The price of blue-dyed diesel will be Sval Energi says deal includes 17.5% it set a target to cut the total estimated
HRK9.16 per litre. ownership in the Fenja field (PL 586), 30% decommissioning cost of the UKCS by
ownership in the Oda field (PL 405) and 35%, from a £59.7 billion baseline. Despite
eight additional licenses. Suncor Energy having made swift progress in the first two
Orlen Lithuania sees its net Norge staff will transfer to Sval Energi. years of the target, cutting the estimate by
“The transaction will add a daily
17%, progress has slowed.
losses spike 17 times in 2Q production of approximately 4000 barrels (2%) to £44.5 billion, putting the overall
In 2021, the total fell by £1.5 billion
of oil equivalent and 19 million barrels of
2022, y/y oil equivalent in reserves to the Sval Energi reduction since 2017 at £15 billion (25%).
portfolio,” said the company.
NSTA says the slow down is “partly due to
Orlen Lietuva (Orlen Lithuania), the CEO Nikolai Lyngø of Sval Energi said: the logistical and economic pressures of
Lithuanian subsidiary of Poland’s oil group “This transaction represents another step the Covid-19 pandemic”, but that “progress
Orlen, saw its net losses soar 17.1 times in on our growth journey. We already have a has continued. Importantly, the scale of
2Q 2022, to $209mn (€204.4mn at August capable team in place and look forward to reductions to the estimate is reflected in
5 rate), from $12mn a year earlier, BNS, welcoming new colleagues from Suncor’s the final costs of completed projects, which
a Baltic news wire service, reported on Norway team – they will strengthen us even are on average 20-25% lower than initially
August 5. further. predicted for the period 2017-21.”
Orlen Lietuva’s General Director Michal “The Norwegian Continental Shelf is “This was a sizeable investment in
Rudnicki said in a press release that the still attractive, and we are building a strong the face of unprecedented logistical and
company’s second-quarter performance cash-generating business in Norway with economic pressures, and points to industry’s
figures reflected tense macroeconomic producing assets, future developments, and determination to carry out planned work
situation in the world. exciting exploration opportunities. We are and meet its decommissioning obligations,”
“Even though macroeconomic conditions executing our strategy and transforming NSTA said. “The highly ambitious 35%
in the world are changing continuously and into a significant player on the Norwegian target was always intended to be challenging
become extremely difficult at some points, Shelf.” and the significant savings already delivered
Orlen Lietuva works on strengthening of In June, Sval Energi completed the greatly benefit companies, which can
its position in the oil market and plans vast acquisition of Spirit Energy Norway from invest more in production and emissions
investments in development,” he said. Centrica. The USD 1,026 million Spirit reduction projects, and taxpayers by
The company’s revenue rose by an annual Energy Norway acquisition closed May reducing the cost of decommissioning tax
46% in the second quarter to $1.704bn 31, with January 1 2021 as the commercial reliefs to the Exchequer.
(€1.666bn), driven by the rapid growth in effective date. The acquisition includes 45 “Improving performance on costs is
global crude oil and petroleum product licenses (6 operated), including 7 producing likely to be challenging in the short term
prices in spring, according to the press fields (2 operated), and several development due to market inflation and competition
release. and exploration opportunities. for resources from other energy sectors.
The company also recorded increases Back in 2021, Sval completed the $300 Therefore, the report calls on industry
in sales of its products in all three Baltic million acquisition of Edison Norge. The to redouble its efforts, ensuring that
countries in the second quarter compared deal, first announced in December 2020, it plans effectively, collaborates on
to the first quarter: of 9% in Lithuania, 15% saw HitecVision-backed Sval acquiring innovative commercial models, deploys
in Latvia, and 14% in Estonia. Across the ten production licenses on the Norwegian new technologies and, where possible,
three countries, product sales grew by 12% continental shelf. reuses and repurposes infrastructure – all
on average. The assets included 10% ownership of the of which are priority areas in the NSTA
The refinery processed over 1.4mn tons Dvalin field development and increased Sval Decommissioning Strategy. Repurposing
of feedstock between April and June, down Energy’s Nova field development holding infrastructure for energy transition projects,
43% versus the previous quarter, due to a by 15% to a total of 25%. The assets brought including carbon storage, can also make a
shutdown for nearly 40 days for turnaround Sval additional net reserves of around 25 significant contribution to the UK’s drive to
and modernization. million barrels of oil equivalent..... net zero.”
The company’s EBITDA was negative The NSTA is now engaging with the
$255mn (€249.3mn) in the reporting sector to launch a new baseline estimate and
period.. UKCS Decom Cost Reduction cost efficiency target, effective from the start
of 2023.
Falling Short Spending on decommissioning has
Sval Energi to Buy Suncor The UK’s North Sea Transition Authority also slowed. NSTA said that, in 2021,
decommissioning expenditure totalled £1.2
Norway for $410mn (NSTA, formerly Oil & Gas Authority) billion, lower than the forecast £1.4 billion.
It said this was due to improved project
says an estimate of the total cost of
Sval Energi has signed an agreement with decommissioning UK Continental Shelf execution and Covid-related deferrals of
Suncor Energy to acquire Suncor Energy (UKCS) oil and gas infrastructure fell just activity.
Norge, adding 4000 barrels of oil equivalent 2% last year. The drop, following a 4%
and 19 million barrels of oil equivalent in reduction the year before, sets the industry
reserves on the Norwegian Continental on course to miss a 35% cost reduction

Week 31 05•August•2022 www. NEWSBASE .com P13