Page 11 - EurOil Week 20 2021

EurOil POLICY EurOil

Spain imposes oil, gas

exploration ban

SPAIN SPAIN has added its name to the growing num- ($2.1bn) in investment for own-consumption
ber of European countries that have imposed a and behind-the-meter battery systems, and the
Spain is a marginal ban on oil and gas exploration. bill aims to expand the share of renewables in
producer of oil and The climate change and energy transition Spain’s power mix to 74% by 2030.
gas, making the pledge bill, which was passed by the Spanish parlia- A number of other European countries have
largely symbolic. ment last week, immediately prohibits the issue said they will phase out oil and gas exploration
of new oil and gas concessions and prevents the and eventually production. France pledged in
sale of fossil fuel-powered vehicles by 2040. 2017 to end oil and gas production on its main-
Existing concessions also cannot be extended land and its international territories by 2040, and
beyond December 31, 2042, after which point cease granting new exploration permit. Ireland
it will become illegal to produce oil and gas in followed suit, declaring a ban on onshore per-
the country. mits in 2018 and offshore permits in 2019. Next
Most of Spain’s remaining oil and gas produc- came Denmark, which in December last year
tion assets are situated in the Mediterranean Sea, halted licensing immediately and said it would
some 45 km off the coast of Tarragona. These phase out production by 2050.
include the Repsol-operated Lubina and Mon- Larger producers such as Norway and the UK
tanazo oilfields, which net the company 1,320 are yet to indicate they will take such a course,
barrels of oil equivalent per day (boepd). although they have faced pressure from environ-
Spanish lawmakers also approved €1.7bn mentalists to do so. ™

Poland decides on structure of PKN

Orlen-led energy giant

POLAND THE Polish state will have a 50% stake in the company asked Poland’s competition watchdog
new national energy giant that the government UOKiK to okay the takeover of PGNiG earlier
The government plans is building under the leadership of refiner PKN this month.
to create a major Orlen, the state assets ministry said on May 12. The government plans for Orlen to be able
integrated player like The new company is being forged via Orlen’s to move closer to giants like BP, Total, Shell, or
BP, Total, Shell or takovers of Poland’s other, smaller, refiner, Lotos, Repsol, which are investing in their value chains
Repsol. and oil and gas exploration and production and in prospective branches such as renewables
company PGNiG. The aim is to create a “strong or hydrogen, according to the ministry.
multi-energy company,” whose strategy will be Orlen’s capex came in at PLN9bn (€2bn) in
shaped by the Treasury, the ministry said. 2020. The company plans to increase that to
“We are creating an integrated and diversified PLN9.5bn in 2021.
fuel and energy company based on the strengths Orlen’s stock rose 1.09% to PLN74 at the
of each [participating] company that will be end of the day’s trading on the Warsaw Stock
capable of facing the challenges of energy trans- Exchange on May 12. Year-to-date, the compa-
formation and international competition,” PKN ny’s share price has grown 28.21%. Orlen’s mar-
Orlen’s CEO Daniel Obajtek said in a statement. ket cap is PLN31.7bn.
The new entity will guarantee long-term Other than the Treasury, Orlen’s major
profits for companies and their shareholders shareholders include pension funds Nation-
and stable energy prices for the Polish economy, ale-Nederlanden and Aviva Santander. Poland’s
Obajtek also said. oil pipelines operator PERN has a 4.9% stake,
The European Commission condition- whereas another pension fund, managed by the
ally cleared the Orlen-Lotos deal in July. The state-controlled insurer PZU, has 4.21%. ™

Week 20 20•May•2021 www. NEWSBASE .com P11