Page 9 - EurOil Week 13 2021

EurOil COMMENTARY EurOil

PGNiG continues Norwegian buying

spree with $615mn Ineos deal

This marks PGNiG’s ninth acquisition in Norway since 2017, establishing the

company just outside the top 10 producers in the country.

POLAND POLISH gas company PGNiG has continued arm of US oil firm Hess for $150mn in March.
its acquisition spree off Norway with its biggest PGNiG President Pawel Majewski said the
purchase to date worth $615mn. acquisition would provide a boost to Polish
WHAT: The state-owned firm has struck a deal to energy security, with the company on track to
PGNiG has bought more acquire the Norwegian business of UK group produce 4 bcm per year off Norway by 2027. The
gas assets off Norway. Ineos, which produces around 33,000 barrels of company is gathering resources to fill its Bal-
oil equivalent per day (boepd), including 1.5bn tic Pipe project, which is due to pump up to 10
WHY: cubic metres per year of gas. The transaction cov- bcm per year of Norwegian gas to Denmark and
The company wants to ers 22 licences, including non-operated stakes in Poland starting in 2022. The pipeline will help
acumulate resources for the Ormen Lange (14%), Alve (15%) and Marulk Poland ease its reliance on gas supplies from for-
its Baltic Pipe project. (30%) fields, as well as the Equinor-operated mer Communist master Russia, which Warsaw
Nyhamna terminal, which handles gas en route views as a national priority.
WHAT NEXT: to the UK and mainland Europe. “This will result in a greater diversification
North Sea M&A is off to a “The deal allows us to monetise a non-oper- of the sources of gas imports, which is a guaran-
blockbuster start to this ated, predominantly gas portfolio at an attrac- tee of uninterrupted supplies of the fuel whose
year. tive price compared to our hold value,” Ineos role in Poland’s economy is constantly growing,”
chairman Brian Gilvary said. “This will further Majewski said.
balance our portfolio of oil and gas and open up PGNiG will also gain around 117mn barrels
new opportunities to reinvest further into the of oil equivalent (boe) in reserves through the
energy transition.” Ineos purchase. The company has made a num-
The UK firm is expanding in other areas as ber of smaller-sized acquisitions in Norway in
well. In January, it closed the $5bn acquisition recent years. In 2019 it bought a 10% stake in the
of BP’s petrochemicals business, giving it greater Duva field from Pandion Energy, and in May
global reach. It also agreed to buy the Danish the following year, it purchase shares in the Gina

Week 13 01•April•2021 www. NEWSBASE .com P9