Page 9 - EurOil Week 21 2021

EurOil INVESTMENT EurOil

Kistos closes Dutch takeover

NETHERLANDS LONDON-LISTED investment group Kistos grams of CO2 equivalent per barrel of oil equiv-
has closed the purchase of a package of gas assets alent, versus an industry average of 22 kg of CO2
Kistos has acquired off the Netherlands from Dutch producer Tulip per boe for the UK North Sea. It is described as
Tulip’s Q10-A field and Oil. “probably the lowest carbon footprint of any pro-
other assets. Kistos has acquired Tulip’s wholly owned duction assets in the North Sea,” powered with
subsidiary Tulip Oil Netherlands, which controls wind and solar energy.
60% operating interests in the producing Q-10A “We therefore see this acquisition as abso-
gas field and the Q-10B, Q-11B and M10/M11 lutely in line with Kistos’ strategy of managing
discoveries, as well as the Donkerbroek Main, assets with a role in energy transition,” Austin
Donkerbroek West and Akkrum 11 licences. The said.
deal is worth €220mn ($268mn) and includes Kistos also said it had sanctioned new
€60mn in cash, as well as various shares and appraisal work at the Q11-B discovery as well
bonds. as a drilling and workover programme at Q10-
“This represents the culmination of many A. Drilling is set to kick off in the second half of
months of work and is, in my view, a hugely 2021.
exciting development for stakeholders in Kis- “We are very excited for the future of Kistos,
tos,” Kistos chairman Andrew Austin said in a [and] with a proven low cost production base
statement. “The portfolio of assets that we have from the Q10-A field and two further appraisal
acquired includes profitable and cash generative wells planned this year, we look forward to
producing assets, plus exploration and appraisal extending our reserves base and increasing our
assets from which we are looking to deliver sig- presence in the Q Block core area,” Austin said.
nificant upside for our shareholders.” Kistos said it had GBP46.8mn ($66mn)
He noted that commercial production from of cash in the bank, implying net debt of
Q-10A generated Scope 1 emissions of only 9 GBP82.2mn. ™

PKN Orlen issues €500mn

worth of green bonds

POLAND POLAND’S state-controlled refiner PKN Orlen Initiative (CBI) certificate, confirming that pro-
placed €500mn in green eurobonds, with over jects implemented with the funds obtained from
The seven-yearbonds 200 investors racing in with subscriptions total- the issue “positively contribute to the achieve-
with a coupon rate of ling €6bn, the Warsaw-listed company said on ment of the goals set out in the Paris Agreement
1.125% are the first May 21. to limit global warming to a value below 2°C and
green eurobonds by a The seven-year bonds with a coupon of to achieve zero emissions by 2050 at the latest.”
Polish company. 1.125% are the first green eurobonds by a Polish PKN Orlen said that it would apply for
company. admission of the issue to trading on the Euronext
The issue is international and foreign inves- Dublin and the Warsaw Stock Exchange.
tors acquired most of it. Bonds were allocated to PKN Orlen has pledged to reduce CO2 emis-
182 investors from 26 countries, with the largest sions by 20% from its refining and petrochemical
share held by investors from Germany, Austria operations, and by 33% from electricity produc-
and Switzerland, at 44% of the issue, and Poland tion by 2030. ™
at 23%.
Huge demand led PKN Orlen to reduce pric-
ing twice, from the original level of 160-165 basis
points, through 135-140 basis points to 125 basis
points above the mid-swaps.
PKN Orlen will use the funds obtained to
build and acquire new renewable energy pro-
jects, further development of the network of
fast chargers for electric cars as well as charging
infrastructure for hydrogen buses and cars, and
development of waste recycling installations.
The issue obtained the Climate Bonds

Week 21 27•May•2021 www. NEWSBASE .com P9