PGNiG to acquire KUFPEC Norway assets for $445 million

Nov. 21, 2023
PGNiG Upstream Norway AS, an ORLEN Group company, has agreed to acquire all shares of KUFPEC Norway AS.

PGNiG Upstream Norway AS, an ORLEN Group company, has agreed to acquire all shares of KUFPEC Norway AS, a subsidiary of Kuwait Foreign Petroleum Exploration Co., for $445 million.

Following the deal’s closing—expected by yearend subject to Norwegian authority approvals—ORLEN Group’s natural gas output in Norway will increase by one-third, reaching over 4 billion cu m/year. 

 With the deal, PGNiG Upstream Norway adds to its existing interests in Equinor Energy AS-operated producing North Sea fields Gina Krog (30%), Sleipner Vest (10%), Sleipner Ost (9.4%), Gungne (10%), and Utgard (6.2%). Gas produced from these fields will be transported to Poland via the Baltic Pipe pipeline. Daily hydrocarbon production is expected to surpass 100,000 boe by end-2024.

The agreement covers acquisition of all shares in KUFPEC Norway along with all its assets and is expected to increase PGNiG’s recoverable reserves to nearly 400 million boe. Over 80% of these new resources will consist of natural gas.