PGNiG Upstream Norway will combine the upstream assets that PKN Orlen has gained in Norway

PGNiG Upstream Norway will combine the upstream assets that PKN Orlen gained in Norway through the acquisition of Lotos Group and PGNiG, PKN Orlen said on Tuesday.

– Norwegian law says that we have to operate in Norway as a single entity, PKN Orlen’s equity investment director Robert Sleszynski told a press conference on the results on Tuesday.

He added that it was “a matter of six months to bring about the amalgamation”. Production licences on the Norwegian Shelf are held by both Lotos Group and PGNiG – companies acquired by Orlen this year.

Śleszyński pointed out that Orlen is currently analysing from the perspective of the consolidated group the companies’ applications for new concessions on the Norwegian Shelf.

– These applications are absolutely complementary. Moreover, as part of today’s discussion, the details of which I will not disclose, it is Lotos that has also submitted a very attractive project to develop what it has in cooperation with a partner that PGNiG Upstream Norway could already look at and evaluate, Śleszyński said.

He acknowledged that synergies are already being realised.

– The potential for cooperation of assets in Norway is there. It will be consolidated around the middle of the year. There are a number of tax implications, I don’t want to comment on the details because we are still before the tax analyses. Rather, we will be combining it. There is no denying it – PGNiG Upstream Norway is much bigger, much more active, much more experienced, so we see the role of a leader in this company,’ Śleszyński pointed out.

PGNiG Upstream Norway AS (PUN) reports that it is an oil and gas company headquartered in Stavanger, Norway. The sole owner is Polskie Górnictwo Naftowe i Gazownictwo, which was acquired by PKN Orlen.

In 2021, PUN acquired and merged with INEOS E&P Norge AS, allowing PGNiG access to significant gas volumes for Baltic Pipe.

PUN is a non-operating partner on thirteen producing fields: Ormen Lange, Skarv with Arfugl, Gina Krog, Duva, Kvitebjorn, Marulk, Alve, Arfugl Nord, Vale, Skogul, Vilje, Morvin and Valemon, and in seven discoveries in the development phase (Tommeliten Alpha, King Lear, Orn, Shrek, Gjok, Alve North and Cape Vulture), which are planned for development in the coming years. As of the beginning of 2022. PGNiG holds a record 61 licences.

Lotos Group’s exploration and production activities in Norway are carried out through its subsidiary LOTOS Exploration & Production Norge AS (LOTOS Norge), based in Stavanger.

At the end of Q1. 2022, LOTOS Norge was a shareholder in 34 licences for exploration, appraisal and production of hydrocarbon fields on the Norwegian Continental Shelf. Compared to the end of 2021, the number of concessions increased by four new concessions acquired in the APA 2021 (Awards in Predefined Areas) licensing round. Three concessions are located in the area of the ongoing NOAKA project, where LOTOS will collaborate with AkerBP. One concession, where LOTOS will operate jointly with PGNiG, is located in a part of the North Sea where the company has not been actively exploring for and producing hydrocarbons to date.

Source: PortalMorski.pl