In November 2023 PGNiG Upstream Norway from ORLEN Group took-over the extraction company KUFPEC Norway AS, subsidiary of Kuwait Foreign Petroleum Exploration Company k.s.c.c., thanks to which ORLEN’s gas extraction in the Norwegian Continental Shelf will increase by 1/3 to exceed 4 billion cubic meters per year. The transaction includes shares in 5 fields already exploited by ORLEN – Gina Krog, Sleipner Vest, Sleipner Ost, Gungne and Utgard – from which gas is supplied to Poland through the Baltic Pipe constructed by Poland and Denmark in September 2022. The transaction results in transfer of all KUFPEC shares, assets and over $200m cash for the price $445m.
It will be financed entirely with PGNiG’s revenues from its operations in the Norwegian Continental Shelf. The return on investment is expected to be very fast, about 1.5 year. After the take-over PGNiG’s production will increase by over 100,000 barrels of oil equivalent (boa) per day to almost 400 million, 80% of which will be natural gas, as envisaged ORLEN’s strategy to maximise production of gas for Poland and its region. The transaction has promoted PGNiG from 10th to 8th position in annual extraction on the Norwegian Continental Shelf, where ORLEN has already transacted 12 acquisitions from 2017 to 2023 and now holds 94 concessions in the Shelf being its 5th biggest company.
