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PGNiG: Start Of Production At Norwegian Sea Skarv Field Delayed To 4Q 2012

WARSAW -(Dow Jones)- Production at the Skarv oil-and-gas field in the Norwegian Sea has been delayed again, this time until the fourth quarter of this year, because continuous high waves have prevented pipe installation, Polish utility PGNiG SA (PGN.WA) said in a statement Tuesday. "To link each production installation to the [floating production, storage and offloading] platform, three days of seas in which waves are no higher than two meters are required for each one," PGNiG said. "For all of winter, from November to March, such a window of favorable weather didn't occur." Development of the Skarv field, owned by a consortium of BP (BP.LN), Statoil (STL.OS), E.ON Ruhrgas and PGNiG, has been hit with repeated delays, with production originally slated to begin in mid-2011. The start of production had most recently been postponed until the second quarter of this year. PGNiG owns a 12% stake in the field, which is operated by BP. -By Marynia Kruk, Dow Jones Newswires; +48 22 447-2431; marynia.kruk@dowjones.com

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