INEOS Energy has announced an agreement to sell its oil and gas business in Norway to PGNiG Upstream Norway for $615 million.
The deal includes all INEOS Oil & Gas interests in production, licenses, fields, facilities and pipelines, on the Norwegian continental shelf.
INEOS E&P Norge AS produces around 33,000 BOE per day from the Norwegian Sea. A 93% gas ratio, from 3 non-operated fields, Ormen Lange (14%), Alve (15%) and Marulk (30%). The business has equity in the Nyhamna Terminal (8%) and also holds 22 offshore licenses, of which 6 are operated.
All 52 employees of INEOS E&P Norge will transfer to PGNiG Upstream Norway following completion of the deal.
Polish oil and gas company, PGNiG Group, employs 25,000 people worldwide. PGNiG Upstream Norway is an integrated exploration and production company established in Norway in 2007 and plays an important role in the supply of gas to Poland.
Brian Gilvary, executive chairman of INEOS Energy said: “The deal allows us to monetise a non-operated, predominantly gas portfolio at an attractive price compared to our hold value. 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.”
The sale, which has an effective date of 1 January 2021, is subject to approval by the Norwegian Ministry of Petroleum and Energy and the Norwegian Ministry of Finance. It is expected to complete later this year.