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Polish energy giant Orlen to buy oil and gas assets in Norway for $445m

20.11.2023 18:30
Poland’s largest refiner Orlen says it has agreed to buy oil and gas producing assets on the Norwegian continental shelf from Kuwait Foreign Petroleum Exploration Company (KUFPEC) for USD 445 million as part of efforts to diversify energy supplies.
Daniel Obajtek.
Daniel Obajtek.PAP/Marcin Gadomski

"PGNiG Upstream Norway, a company of the Orlen Group, is set to assume control of the entire operations of the hydrocarbon producer KUFPEC Norway," the Polish energy giant said in a statement.

It added that, with this transaction, the Orlen Group's natural gas output in Norway would increase by a third to over 4 billion cubic metres annually, while daily hydrocarbon production is expected to surpass 100,000 barrels of oil equivalent by the end of 2024.

Orlen also said that "the newly acquired business encompasses interests in five fields where the Orlen Group is already active."

Gas produced from these fields will be transported to Poland via the Baltic Pipe pipeline, according to the statement.

Orlen CEO Daniel Obajtek said: “We have successfully concluded a strategic deal on the Norwegian Continental Shelf. With the acquisition of KUFPEC Norway, the Orlen Group's gas production in Norway is set to grow by more than 1 billion cubic metres per year. This significantly enhances our capacity to meet the demand of the Polish market and the entire region utilising our own gas resources."

Obajtek added: "Beyond advancing the Orlen Group's strategic goals, this transaction brings synergies that boost our development potential in Norway. We have secured control of fields where we already hold direct interests acquired through previous transactions, this will ensure seamless integration of the acquired assets, optimisation of operating costs and, by significantly scaling up our operations, access to attractive funding for further investments."


Source: PAPorlen.pl