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PGNiG buys Norwegian oil and gas licenses

PR dla Zagranicy
Peter Gentle 28.10.2014 11:26
Poland's natural gas monopolist has acquired shares in four new oil and gas licenses located in the Norwegian Continental Shelf.

Photo: Glowimages

The transaction was carried out by subsidiary PGNiG Upstream, which bought the shares from Total E&P Norge for 1.95 billion Norwegian krone or 996 million zloty (some 233 million euro).

The deal is subject to approval from Norwegian authorities and should be finalised before the end of 2014.

The Polish company bought minority stakes in three production licenses (Morvin, Vilje and Vale) and in one license under development (Gina Krog). The acquisition increases PGNiG's assets in Norway by about 60 percent.

Total extraction from these areas in 2014 is expected to reach some 320,000 tonnes of crude oil and 90 million cubic metres of natural gas. The deposits are expected to last for the next 14 years, PGNiG said.

“Involvement in four new deposits in Norway is of special importance to us,” said PGNiG chief executive Mariusz Zawisza. “First of all, it means that production outside Poland will immediately grow by about 60 percent.”

“Second, the transaction will allow us to maintain higher extraction levels for ten years at least. Third, we expect a short period of return on investment, and this is good news for shareholders.”

PGNiG said it would cooperate with “leading oil groups” while working on the new licenses. It is also counting on obtaining shares in new deposits that may be found in the Utsira High basin, where the Gina Krog license is located. (kw)

sources: TVN24 Biznes i Swiat, PAP

tags: gas
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