News
30.12.2014 PGNiG closes the acquisition of four fields on the Norwegian Continental Shelf
On December 30th 2014, PGNiG Upstream International AS, a subsidiary of PGNiG SA, finalised the acquisition of interests in four fields on the Norwegian Continental Shelf from Total E&P Norge AS. The parties were able to close the transaction following the fulfilment of all conditions precedent stipulated for the agreement of September 29th 2014.
The purchase price (NOK 1,950m), a significant portion of which was covered with cash flows generated in the period between the agreed acquisition date and the date of actual settlement, was also settled. Given the achieved sales targets of hydrocarbons produced from the acquired fields in 2014, reduced costs and capital expenditure, as well as favourable foreign exchange rates, the ultimate cash payment will amount to approximately NOK 843m (approximately PLN 400m at the exchange rate as of December 30th 2014), which accounts for 43% of the purchase price.
The transaction’s settlement date is December 30th 2014.
The transaction is a part of the PGNiG Group’s strategy and will allow the Group to significantly increase its hydrocarbon production outside of Poland.
PGNiG commenced its operations in Norway in 2007 with the acquisition of an interest in the Skarv field from ExxonMobil. Production from the Skarv field was launched at the end of 2012 and has ever since been an important driver of the Exploration and Production segment’s performance. PGNiG expects its 2014 output in Norway to reach 400 thousand tonnes of crude oil and other fractions and 430 million cubic metres of natural gas.
