Page 14 - EurOil Week 13 2021

EurOil INVESTMENT EurOil

Sval snaps up Edison’s Norwegian business

NORWAY HITECVISION-BACKED Sval Energi has Lyngo commented in a statement. “The acqui-
wrapped up the $300mn purchase of the Nor- sition of Edison Norge strengthens our position
Edison offloaded the wegian business of Italy’s Edison, the former on the Norwegian Continental Shelf [NCS] and
rest of its upstream reported on March 25. will help us scale our activity and build a strong
operations last year. The deal, with an effective date of January portfolio”
1, 2020, gives Sval some 25mn barrels of oil Edison, owned by France’s EDF, offloaded
equivalent (boe) in reserves. Specifically, the the rest of its upstream operations last year
company has increased its position in the Win- in a $284mn deal with London-listed midcap
tershall Dea-managed Nova oilfield, slated to player Energean. It had hoped to offload its
come on stream next year, from 10 to 25%. It has Norwegian assets as part of that transaction,
also secured a 10% stake in the German compa- but they were excluded after Energean’s deal
ny’s Dvalin gas field. Dvalin had been expected to sell them onwards to Neptune Energy fell
online already, but Wintershall Dea had to post- through.
pone the launch after discovering in January that Sval represents just one part of Norway-based
its gas contained large quantities of mercury. HitecVision’s operations in the North Sea. The
Sval has also acquired shares in five explora- company also controls another company called
tion blocks. NEO Energy that is active in UK waters. NEO
“We’re excited to mark this milestone in our clinched a deal to buy a group of assets from
pursuit to build a modern energy company in ExxonMobil in January, and is also on track to
Norway; nimble, forward leaning and active purchase UK-focused Zennor Petroleum from
across several value chains,” Sval CEO Nikolai fellow equity fund manager Kerogen Capital. ™

PERFORMANCE

PGNiG enjoys earnings bump

on Gazprom ruling

POLAND POLAND’S state-controlled oil and gas com- reaching a total sales volume of 31.64bn cubic
pany PGNiG boasted a net profit of PLN7.34bn, metres (bcm).
The Polish company nearly a sixfold increase versus 2019, thanks to The company’s crude oil production
benefitted from the winning back money the company had over- increased 8% in 2020 to 1.32mn tonnes, while
Gazprom payment and paid to Russian supplier Gazprom in 2014-2020, natural gas production remained stable and
the pricing revision in PGNiG said in a market filing on March 25. amounted to approximately 4.52 bcm.
its contract with the The Gazprom payback also clearly showed “In the coming years, an increase in demand
Russian supplier. in PGNiG’s operating profit, which came in at for gas is expected, for example, due to the
PLN9.59bn compared to PLN2.45bn a year ear- commissioning of new gas-fired units in CHP
lier. Ebitda also more than doubled to PLN13bn plants. Linking gas prices to stock exchange
versus PLN5.5bn a year earlier. indices in Europe has created completely new
“Undoubtedly, the most important event of conditions for running our business,” Majew-
last year from the point of view of the company’s ski said.
results was the outcome of the arbitration pro- “This will allow us to face the challenges
ceedings with [Gazprom], PGNiG’s CEO Pawel related to Poland’s energy transformation. Gas
Majewski said in a statement. will play a leading role in it and PGNiG is ready
“Still, much more important is the establish- … to support the Polish economy in this,” the
ment of a new pricing formula in the Yamal con- CEO added.
tract, as it will have a [positive] impact on the The company’s shares fell 1.57% to PLN5.66
costs of obtaining gas in the quarters to com,” on March 25 on the Warsaw Stock Exchange.
Majewski also said. Year to date, PGNiG’s stock has gained 2.99
PGNiG’s sales revenues diminished 6.7% while over the past 12 months, there was a
to PLN39.2bn in 2020. Last year, the company surge of 89.12%. The company’s market cap is
sold some 3% more natural gas than in 2019, PLN32.7bn. ™

P14 www. NEWSBASE .com Week 13 01•April•2021