PGNiG Upstream Norway has agreed to acquire all assets of Ineos Group’s Norwegian subsidiary Ineos E&P Norge AS for $615 million. The deal includes all Ineos Oil & Gas interests in production, licenses, fields, facilities, and pipelines on the Norwegian continental shelf.
Ineos E&P Norge produces some 33,000 boe/d from the Norwegian Sea with interests in 22 licenses (6 operated) and the Nyhamna gas terminal in northern Europe (8%). With a 93% gas ratio, the assets include Ormen Lange (14%), Alve (15%), and Marulk (30%) fields.
With the deal, the volume of natural gas production by PGNiG on the Norwegian Continental shelf will increase by about 1.5 billion cu m/year (bcmy), resulting in potential total production of 4 bcm in 2027.
The deal ensures a significant volume of gas for the 10-bcmy Baltic Pipe natural gas pipeline, said Paweł Majewski, PGNiG management board president in a release Mar. 25. From 2022, gas from Norwegian fields will be transported to the country via the 36-in. OD natural gas pipeline (OGJ Online, June 29, 2020).
Currently, PGNiG Upstream Norway holds interests in 36 licenses and produces crude oil and natural gas from nine fields. Six more are undergoing investment and analytical work. Last year, PGNiG mined some 500 million cu m on the Norwegian continental shelf.
The sale, subject to approval by the Norwegian Ministry of Petroleum and Energy and the Norwegian Ministry of Finance, is expected to close later this year with all 52 employees of INEOS E&P Norge expected to transfer to PGNiG Upstream Norway AS.
