Saturday, September 25, 2021

Polish company to acquire 21 licenses on the Norwegian Continental Shelf

 A Polish company,PGNiG Upstream Norway, has just received approval from Norwegian authorities to acquire all assets of INEOS E&P Norge. Once the transaction is completed, the PGNiG Group will acquire a portfolio of promising upstream assets, set to meaningfully contribute to the delivery of its strategic objectives in natural gas production.

The estimated payment upon completion of the transaction will be approx. USD 323 million versus initially agreed USD 615m for the contractual transaction date of January 1st, 2021. The difference is attributable to the reduction of the initially agreed price by income generated by INEOS E&P Norge over the first nine months of the year.

The purchased licences include producing fields: Ormen Lange (14%) Marulk (30%) and Alve (15%). The key asset is Ormen Lange, the second largest gas field on the Norwegian Continental Shelf. As part of the transation, PGNiG Upstream Norway will also acquire an 8.2% interest in the Nyhamna gas processing plant (8.2%), which receives the output of Ormen Lange and Aasta Hansteen, among other fields.