INEOS Energy, the energy group formed in 2020, announced today it is selling its entire oil and gas business in Norway to PGNiG Upstream Norway AS, for a total consideration of $615 million. The deal includes all interests in production, licenses, fields, facilities, and pipelines.
Firstly, the INEOS business in the country produces around 33,000 barrels of equivalent oil (BOE) per day from the Norwegian Sea. Particularly, the package include a 93% gas ratio from three non-operated fields. It also holds 22 offshore licenses, of which 6 are operated.
Secondly, the selling intends to rebalance INEOS’ portfolio in terms of oil and gas moves, and to move the company towards a more operated position in the sector.
Thirdly, the sale, although it became effective in January 1, 2021, it is still subject to approval from regulatory officials in Norway, like the Norwegian Ministry of Petroleum and Energy and the Norwegian Ministry of Finance. Sale may be complete later this very year.
On the other hand, all the work force from INEOS working on the sold assets will join PGNiG Upstream crew, immediately after the completion of the sale.
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INEOS Energy looking for a stronger energy transition approach
Moreover, PGNiG Group is the largest Polish oil and gas company in Norway. It employs more than 25,000 people worldwide. In fact, PGNiG Upstream Norway AS is an integrated exploration and production company established in Norway, since 2007; it plays an important role in the supply of gas to Poland.
In addition, Brian Gilvary, Executive Chairman of INEOS Energy, said. “This represents another positive step in the INEOS Energy journey. The deal allows us to monetize a non-operated, predominantly gas portfolio at an attractive price compared to our hold value.”
He also added. “This will further balance our portfolio of oil and gas; and open up new opportunities to reinvest further into the energy transition. These assets are a very strong strategic fit for PGNiG and significantly extends their position in Norway.”
Finally, the announcement of this sale follows the announcement of the acquisition of the HESS business in Denmark, which consists of operated assets. Both of these deals intend to reshape the company towards a stronger approach in energy transition.
