Orlen finalises acquisition of KUFPEC Norway

– Orlen has finalised the acquisition of the mining company KUFPEC Norway – Orlen CEO Daniel Obajtek told Platform X. It is expected to increase Orlen Group’s production in Norway from one bcm to over four bcm in 2024.

– We have finalised the acquisition of the mining company KUFPEC Norway,” Obajtek wrote on platform X (formerly Twitter) on Friday.

“The crude will come to Poland via Baltic Pipe, increasing the country’s energy security,” he – Orlen’s board chairman and CEO added.

KUFPEC Norway is part of Kuwait Foreign Petroleum Exploration Company (KUFPEC) – established in April 1981 by the parent company Kuwait Petroleum Corporation (KPC), an international exploration company engaged in the exploration, development and production of oil and gas outside the State of Kuwait.

As previously reported by Orlen, the contractual price of the transaction is $445 million. It includes the value of the acquired fields and the value of the remaining assets of KUFPEC Norway, including cash, estimated to be worth $200 million. As a result of the acquisition of control of KUFPEC Norway, Orlen’s Norwegian company PGNIG Upstream Norway will increase its stake in the already exploited Gina Krog, Sleipner Vest, Sleipner Ost, Gungne and Utgard fields. The acquisition agreement is for all shares in KUFPEC Norway and its assets.

Orlen estimated that due to the acquisition of KUFPEC Norway, Orlen Group’s natural gas production in Norway will increase by one-third and exceed 4 billion cubic metres per year. PGNiG Upstream Norway’s daily hydrocarbon production will already exceed 100,000 boe – barrels of oil equivalent in 2024.

Among the acquired shares is a 30 per cent stake in the Gina Krog field, with PGNiG Upstream Norway’s share increasing to over 41 per cent due to the acquisition. The company recalled that the Orlen Group company and its concession partners recently announced the discovery of additional gas resources located directly near Gina Krog.

Source: PortalMorski.pl