INEOS Energy has announced an agreement to sell its Oil and Gas business in Norway to PGNiG Upstream Norway AS for a consideration of $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 also holds 22 offshore licenses, of which 6 are operated, and has equity in the Nyhamna Terminal (8%).

The deal announced today continues to rebalance our portfolio in terms of oil and gas and moves INEOS Energy towards a more operated position.

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.

All 52 employees of INEOS E&P Norge AS will transfer to PGNiG Upstream Norway AS following completion of the deal.

The PGNiG Group is the largest Polish oil and gas company employing 25,000 people worldwide. PGNiG Upstream Norway AS 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, “This represents another positive step in the INEOS Energy journey. 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."

Today’s deal quickly follows the announcement of the acquisition of the HESS business in Denmark, which consists of operated assets. These deals begin reshaping INEOS Energy as it progresses a strategy to position the businesses strongly in the coming energy transition.

About INEOS Energy

INEOS announced the formation of its new INEOS Energy group in December 2020.
The new business will incorporate all existing INEOS oil & gas assets.
Brian Gilvary is Executive Chairman of the new group.
INEOS is also involved in several projects to develop demand for hydrogen, replacing existing carbon-based sources of energy, feedstocks and fuel. It expects to develop further partnerships with leading organisations involved in the development of new applications.

About PGNiG Norway

The PGNiG group is the largest Polish oil and gas company with 25000 employees globally.
PGNiG Upstream Norway AS is an integrated exploration and production company established in Norway in 2007. It is a subsidiary of the Polish Oil and Gas Company, PGNiG SA.
The Norwegian subsidiary plays an important role in the supply of gas to Poland
PGNiG Upstream Norway AS is a non-operating Partner in nine producing fields: Gina Krog, Valemon, Kvitebjørn, Morvin, Skarv, Ærfugl, Vilje, Skogul and Vale and in five fields in the development phase: Duva, Tommeliten, Alpha, King Lear Ærfugl Outer and Shrek. It is also a partner in the Fogelberg and Alve North discoveries, which are being planned for development in the coming years.
PGNiG Upstream Norway AS currently has 39 employees located both in its main office in Stavanger and in a regional exploration office in Tromsø.

About PGNiG

Polish Oil and Gas Company (PGNiG) deals with exploration and production of natural gas and crude oil and – through its branches and key companies from the Capital Group – with import, storage, sales, distribution of gaseous and liquid fuels, production of heat and electricity as well as geophysical and drilling services. Its subsidiaries and branches carry out exploration and production activities in Norway, Pakistan and UAE, gas sales in Germany and LNG trading through an office in London.