Page 13 - EurOil Week 44 2022

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Poland’s PKN Orlen completes damage site inspection, technogenic craters Italy expands Adriatic drilling to
with a depth of 3 to 5 meters were found on
merger with PGNiG the seabed at a distance of about 248 meters boost gas supply
from each other,” it said.
State-controlled Polish energy conglomerate Nord Stream 1 and Nord Stream 2, laid Italy’s new government will expand
PKN Orlen has officially completed its merger on the bed of the Baltic Sea from Russia to concessions to drill for gas in the Adriatic,
with another state entity, the oil and gas Germany, were damaged in September and Prime Minister Giorgia Meloni said on Friday,
exploration and production company PGNiG, the infrastructure has been a focal point in in a drive to double Rome’s output to 6 billion
Orlen announced on November 3. the wider row between the West and Moscow. cubic meters per year and lower energy prices
The merger-through-acquisition completes Russia’s defense ministry said on Saturday for firms.
a long process put in motion by the Law and that British navy personnel blew up the Nord The measure will take the form of an
Justice (PiS) government to create an energy Stream gas pipelines, a claim that London said amendment to a government decree due to
company able to become a major international was false. be approved in parliament in the next few
player. Sweden and Denmark have both days, Meloni told reporters.
“We have merged with PGNiG. Thus, we concluded that four leaks on Nord Stream It envisages 10-year concessions to drill
are finalising the takeover processes, thanks to 1 and 2 were caused by explosions, but have between nine and 12 miles off Italy’s Adriatic
which we are joining the group of 150 largest not said who might be responsible. NATO coast, extracting up to 15 billion cubic meters
companies in the world,” PKN Orlen’s CEO Secretary-General Jens Stoltenberg has called of gas, Energy Minister Gilberto Pichetto
Daniel Obajtek said in a tweet. the damage an act of sabotage. Fratin said at a news conference alongside
PKN Orlen formally completed another “The section of the pipe between the Meloni.
merger, with second largest Polish refiner craters is destroyed, the radius of pipe A draft of the scheme seen by Reuters had
Grupa Lotos, on August 1. fragments dispersion is at least 250 metres. set the extraction limit at 10 billion cubic
It expects annual turnover will reach Experts continue to analyse the survey data,” meters over a 15-year period.
PLN400bn (€85.3bn) following the mergers. Nord Stream AG added. Under Rome’s plans, the gas from the new
That is approximately four times the national production will be sold to Italian
annual revenue of Hungary’s MOL but energy-intensive firms at between 50 and
still some distance behind the biggest oil Ithaca Energy IPO set to price at 100 euros per megawatt hour, Meloni said
companies operating in Europe, whose annual - a discount compared with prices on the
revenues are in the hundreds of billions of lower end of range European gas market.
euros. Italy has been working to find new gas
The company said in August that it would A planned initial public offering of North Sea supplies to replace imports from Russia,
present an updated strategy following the oil and gas producer Ithaca Energy IPO is which accounted for around 38% of its total
merger with PGNiG at the turn of the year. set to price at the lower end of the previously consumption last year, before Moscow’s
PKN Orlen’s share price rose 3.3% to guided range, bookrunners on the deal said invasion of Ukraine.
PLN59.96 on the Warsaw Stock Exchange on on Monday. The planned increase in domestic output
November 3. The revised price guidance is for between will provide only a small part of Italy’s needs,
250 and 270 pence per share, compared with with more decisive contributions coming
the previous price range of 250 to 310 pence, from recently signed import agreements with
“Technogenic craters” which had implied a market value of 2.5 countries such as Algeria, Norway, Congo and
Azerbaijan.
billion to 3.1 billion pounds.
discovered at Nord Stream price range, the bookrunners said, adding be doing more to accelerate the rollout of
Environmentalists say Rome should
Books were oversubscribed at the revised
damage site they would close on Nov 8. renewable energy sources such as solar and
wind power.
The planned float of Ithaca - owned by
The Swiss-based operator of Russia-led Nord Tel Aviv-listed Delek Group - on the London Ten European states agreed on Friday to
Stream 1 gas pipeline said on Wednesday it Stock Exchange has been closely watched spell out this year how they will limit export
had completed initial data gathering at the in an IPO market starved of activity since credits for overseas fossil fuel projects, but
location of the pipeline damage on line 1 in Russia’s invasion of Ukraine. they shelved a draft pledge to explicitly end
the Swedish exclusive economic zone and such support after pushback from Italy.
found “technogenic craters”.
“According to preliminary results of the

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