Combined with estimated production volumes from other acquired licences, the deal is expected to increase PGNiG Group’s output of natural gas from the Norwegian Continental Shelf to nearly 2.5bcm
Poland’s PGNiG Upstream Norway has secured approval from the Norwegian authorities to acquire 21 offshore licences from INEOS E&P Norge for $323m.
The acquired licences consist of producing fields that include Ormen Lange, Marulk and Alve. Ormen Lange is the second largest gas field on the Norwegian Continental Shelf.
The deal also includes acquisition of an 8.2% stake in the Nyhamna gas processing plant, which receives the production from Ormen Lange and Aasta Hansteen, among other fields.
PGNiG Upstream Norway is expected to significantly increase its hydrocarbon reserves to 331 million barrels of oil equivalent (mboe), upon completion of the transaction.
In addition, the acquisition is anticipated to expand the company’s gas production by approximately 1.5 billion cubic metres (bcm).
Combined with estimated production volumes from other acquired licences, the deal is expected to increase PGNiG Group’s output of natural gas from the Norwegian Continental Shelf to nearly 2.5bcm, enabling the company to meet its target set in its strategy for 2017–2022.
PGNiG management board president Paweł Majewski said: “The transaction terms are very favourable, demonstrating PGNiG’s competence in E&P sector deals.
“The purchase of INEOS E&P Norge’s licences will allow us to achieve one of our strategic objectives related to security and diversification of gas supplies, while being an investment in promising and highly profitable assets.”
PGNiG is the sole owner of PGNiG Upstream Norway, which has received approval from the Norwegian authorities to acquire all INEOS E&P Norge assets.
The approval allows the company to close the transaction that was announced with the INEOS Group in March this year.
Initially, the asset purchase was agreed for a price of $615m.
In May this year, PGNiG acquired a 25% interest in the Musakhel licence block in central Pakistan.
Located in the northeastern part of Pakistan’s Balochistan province, the block covers an area of 2,176 square kilometres and is estimated to contain 16 bcm of natural gas.