PGNiG's production in Norway in 2013 will be around 370 thousand tonnes of crude oil, including NGLs, and 0.3 billion cubic metres of gas. In 2014 production will be increased following ramp up phase in the first quarter of 2013.

"Increase of gas and oil production is one of the strategic aims of PGNiG. The launch of production from Skarv is particularly important for us. Firstly, Norway is a key area for our international upstream activities. Secondly, Skarv will significantly contribute to our oil production what means higher profitability of the company. This is good news for our shareholders" - said Grażyna Piotrowska-Oliwa, President of the PGNiG Management Board and the company's CEO.

Through its Norwegian subsidiary PGNiG holds around 11.92% in the Skarv project. The field is operated by BP with Statoil Petroleum and E.ON E&P Norge as partners.

The Skarv Field lies approximately 210 kilometres west off the Norwegian coast in water depths of around 350-450 metres. Discovered in 1998, the field is estimated to have gross recoverable reserves of nearly 13 million tonnes of oil, 5.7 million tonnes of NGLs and around 43 billion cubic meters of gas (data from Norwegian Petroleum Directorate).

The field is developed using a new highly-advanced FPSO (floating production, storage and offloading vessel), purpose-built for harsh waters and connected to a gas pipeline, allowing the export of natural gas to markets in Europe.

This is one of the largest ventures in recent years in Norway and the first international project that will bring substantial economic benefits to PGNiG.

Says Geir Kvæl, PGNiG Norway General Manager: "At the current level of oil prices, PGNiG's revenue in Norway is expected to fall in the range of USD 400-500 million per year after tax in the next three years. This will be achieved with relatively low production costs."

The subsidiary responsible for PGNiG's operations on the Norwegian Continental Shelf is PGNiG Norway established in 2007. Its sole owner is PGNiG SA and its share capital totals NOK 1.09 billion. The company currently participates in 10 exploration and production licences on the NCS. Its main asset is the interest in the Skarv field acquired from ExxonMobil in 2007. The overall reserves owned by PGNiG Norway amount to 68.8 million barrels of oil equivalent.

To date, PGNiG Norway has invested around USD 1.1 billion (including acquisition price) in the Skarv project. The funding has been provided by PGNIG and external lenders through a USD 400 million reserve based loan.

Notes to editors:

Skarv

• PGNiG holds 11.92 per cent in the Skarv Unit. BP is the Operator and has a 23.84 per cent interest. Other partners are: Statoil 36.17 per cent; E.ON 28.08 per cent.

Location

• Norwegian Sea, ca. 300 km northwest of Trondheim
• Skarv is located between the Norne Field (35 km to the north) and Åsgard (80 km to the south)

Skarv oil and gas Field

• 1998 Skarv discovered
• 350-450m water depth
• Recoverable reserves of 13 million tons of oil, 5.7 million tons of NGLs and 43 billion cubic meters of gas

Transport solution

• 80km long 26" spur gas line to Åsgard Transport System
• Shuttle tanker loading
• Ability to process third party gas

Skarv FPSO technical features

• Vessel length 295m, width 51m.
• Weight (Topsides/Hull/Turret): 74,000 tons
• Accommodation: 100 single bed cabins
• Prod. capacity oil: 85 000 barrels/day
• Prod. capacity gas: 19 mill m³/day
• Storage capacity: 875,000 barrels
• Wells: 17
• Sub-sea templates: 5
• Technical lifetime: 25 years

PGNiG in Norway:

• PGNiG has been in Norway since 2007
• PGNiG has 10 licences out of which 1 is operated
• Skarv is the first field in production

Norwegian Continental Shelf:

• Currently, 70 fields are in production on the Norwegian continental shelf. In 2011, these fields produced more than 2.0 million barrels of oil (including NGL and condensate) per day and a total of about 100 billion standard cubic metres (Sm³) of gas, a marketable petroleum production totaling 229.7 million Sm3 of oil equivalents (o.e.).
• Norway is ranked as the seventh largest oil exporter and the fourteenth largest oil producer in the world. In 2010, Norway was the world's second largest gas exporter, and the world's sixth largest gas producer.
• It is expected that Norwegian petroleum production will remain relatively stable over the next few years.
• So far, about 43 per cent of what are considered to be the total recoverable resources on the Norwegian continental shelf have been produced.