Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) will reorganize in a multi-step process prompted by shifts in the market and regulatory environment, the company said in a release Oct. 13.
“The planned organizational and asset transformation processes are aimed at creating a model based on a holding company structure,” a structure “used by global leaders of the oil and gas sector,” said Paweł Majewski, president of the PGNiG management board.
The new structure will allow the company “to comply with the changing regulatory landscape, generate adequate operating profitability in an environment of growing competitive pressure and better manage the operating risk related to the volatility of natural gas prices,” he said.
The first step in the reorganization will be to separate the hydrocarbon exploration and production, wholesale gas trading and gas storage businesses from PGNiG, and to transfer their assets as an in-kind contribution of an organized part of business to a new subsidiary within the group. Next, the special purpose vehicle will acquire shares in selected segment companies from PGNiG SA.
Following the reorganization, PGNiG SA will become a corporate center responsible for key management, supervisory and planning functions, with responsibility for the development and implementation of segment strategies and investment projects taken over by the segment companies, PGNiG said.
The reorganization will not entail workforce reductions, Majewski said.
