PGNiG Upstream Norway received approval from Norwegian authorities to acquire all assets of INEOS E&P Norge (OGJ Online, Mar. 25, 2021). The operator will acquire the INEOS Group Norwegian subsidiary for $323 million, nearly half of the $615 million consideration agreed in March.
With the approval, PGNiG can now complete the deal that includes interests in production, fields, facilities, pipelines, and 21 licenses on the Norwegian continental shelf. The price difference is attributable to the reduction of the initially agreed price by income generated by INEOS E&P Norge over the first 9 months of the year, PGNiG said in a Sept. 24 release.
The purchased licenses include producing fields Ormen Lange (14%), Marulk (30%), and Alve (15%). PGNiG also will acquire an 8.2% interest in the Nyhamna gas processing plant (8.2%), which receives output of Ormen Lange and Aasta Hansteen, among other fields.
The transaction will increase hydrocarbon reserves allocated to PGNiG Upstream Norway to 331 mboe as of Jan. 1. The company will also increase its annual gas production by about 1.5 bcm.