PGNiG buys 21 licenses in Norway to fuel its gas plans

PGNiG Upstream Norway has obtained the consent of the Norwegian administration to take over all assets of Ineos E&P Norge. The transaction value will amount to approximately USD 323 million.

Ineos E&P Norge assets include interests in 21 licenses. The gas group said that, after the contract is finalized, it will take over access to the fields that are to significantly contribute to the implementation of its strategic goals, and that after the Baltic Pipe gas pipeline is commissioned, the extracted fuel will go to Poland.

The estimated amount of the transaction will amount to approximately USD 323 million, i.e. approximately PLN 1.27 billion. Originally, PGNiG was to pay $ 615 million, but the transaction date was January 1, 2021. The difference is therefore due to the reduction of the originally agreed purchase price by the revenues that Ineos E&P Norge obtained for the first nine months of the year.

“This is a very advantageous transaction that demonstrates PGNiG’s competence in the field of investments in the hydrocarbon exploration and production market. The purchase of the Ineos E&P Norge license allows us to achieve one of the strategic goals in the field of security and diversification of gas supplies, and at the same time expands our portfolio with prospective assets with high profitability” – emphasized Paweł Majewski, president of PGNiG. The company is the sole owner of PGNiG Upstream Norway.

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