Page 15 - EurOil Week 26 2019

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NEWS IN BRIEF
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PKN Orlen moves closer to merger with Lotos
PKN Orlen has just led a formal application for the European Commission’s approval
of its proposed acquisition of Lotos Group. e completion of the process would result in a single strong internally integrated entity with international potential, whose position in the oil supply market would be even more prominent.
“In business, scale matters. is rule of
thumb is understood by all major European and global players in the fuel and energy business, who have long since gone through their own consolidation e orts,” PKN board president Daniel Obajtek said. “A single strong entity would be well-placed to successfully compete in a demanding market, lend greater stability to the national economy, also in fuel prices, and ramp up its own growth-oriented investments. We have taken up this challenge seeing the merger as a requisite driver of the business future of the combined companies, their shareholder value and energy security
of Poland, serving the interests of both retail customers and local communities.”
PKN’s acquisition of Lotos was initiated
in February 2018, when the pair signed a letter of intent with the Polish state treasury, which holds a 53.2% stake in Lotos. PKN
will rst acquire 33% of Lotos from the state treasury. A tender o er would then need to be announced for shares representing up to 66% of total voting rights at Lotos’ general meeting. Due diligence began in April of last year.
July 4 2019
InfraStrata targets Islandmagee FID this year
UK junior InfraStrata plans to take a nal investment decision (FID) on the Islandmagee gas storage project in Northern Ireland
this year, a er agreeing a deal with global commodities trader Vitol for the project’s entire storage capacity for 12 years.
In a statement, the London-listed rm said it would generate £600-780mn ($755-981mn) before costs at full operating capacity. Over its entire 40-year lifespan, it should generate
a total of £2-2.60bn, the company said in a statement.
Islandmagee will house up to 500mn cubic metres of gas in seven underground caverns. First gas injection is scheduled for 2022 with commercial storage operations starting the following year.
“ e signing of the term sheet has enabled InfraStrata to continue to progress detailed discussions with potential equity and debt partners in the UK and Europe for the funding of the construction of the project and pre-construction works,” InfraStrata said.
Commenting, InfraStrata CEO John Wood said: “We are now at a very exciting stage of the Islandmagee gas storage project. Having underpinned our future revenues with an innovative o ake structure, we have been able to fully model the future income streams for the next 12 years. is has assisted in our negotiations with potential project funding partners.”
InfraStrata is also looking for potential partners to develop new projects, including UK mainland gas storage projects to complement Islandmagee, and oating storage
and regasi cation unit (FSRU) projects to facilitate the importation and regasi cation of LNG into the UK. According to InfraStrata, projects have already been identi ed and discussions are ongoing.
July 4 2019
IGas targets Weald basin
e UK’s IGas has unveiled plans to sink two wells in the Weald basin, as it continues to explore its conventional assets.
e exploration and appraisal wells will be drilled at PEDL 235, and aim to explore for and evaluate the resource potential of both the Portland Sandstones and the Kimmeridge Micrites.
“Recent technical studies by the IGas
team have concluded that the Kimmeridge Micrites have the potential for signi cant resources of around 300mn barrels of oil in place within PEDL 235,” IGas said. e wells will also appraise the Portland Sandstone gas discovery.
“In conjunction with our own technical studies, and data from the discoveries in the Weald basin at Horse Hill, we are excited to be bringing forward up to two exploration/ appraisal wells and production tests with the potential to unlock signi cant recoverable resources at a new site in the Weald basin,” IGas CEO Steven Bowler said.
IGas owns 100% of PEDL 235. e company will submit a planning application a er it has undertaken community consultation.
July 4 2019
Week 26 04•July•2019
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