Poland’s Lotos pushing for upstream assets with Norwegian acquisition

By bne IntelliNews November 1, 2015

Lotos has bought Norwegian offshore oil and gas exploration assets from Exxon Mobil’s Norwegian subsidiary for USD 160mn (€145mn), the Polish state-controlled company announced on October 31.

Like other refiners, Lotos - which reported vastly improved net profit of PLN128mn (€30.1mn) after the first three quarters of 2015 - is looking to bulk up on upstream assets.Peer PKN Orlen, has also purchased production assets recently, as the pair chases low valuations on exploration licences thanks to low global crude pricing.

Following the transaction, which is set to finalise by end of 2015, Lotos will have a 15% stake in four production fields in Norway’s continental shelf. Norway’s Statoil is the operator on Sleipner Ost, Sleipner Vest, Gungne, and Loke. The transaction may be broadened by taking over a 28% stake in Alfa Sentral production field for $25mn, pending on consent from the Norwegian oil and gas regulator.

Lotos assumes it will produce 16,000 barrels of oil equivalent per day (boe/d) from the acquired assets in 2015, out of which 70% will be gas and the remaining 30% condensate (light oil). The production rate will drop to 9,500 boe/d in 2016-2018.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Turkey and Israel aim to ink natural gas pipeline deal by end-2017

Turkey’s Energy Minister Berat Albayrak, son-in-law of President Recep Tayyip Erdogan, is set to visit Israel by the end of this year to conclude an agreement to construct a natural gas pipeline ... more

Polish utility Tauron places €500mn eurobond issue

State-controlled Polish power firm Tauron has sold €500mn worth of eurobonds, the company said on July 5. Tauron needs capital to refinance the costs of construction and the purchasing of a ... more

Hungary signs deal to link to Russia's Turkish Stream gas pipeline

Budapest has signed a deal with Russia's Gazprom to link Hungary with the under-construction Turkish Stream ... more

Most Read

  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    7 hours ago
  2. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    16 hours ago
  3. Wildfires hit Croatia and Montenegro’s Adriatic coast
    7 days ago
  4. EU allows Gazprom to use an additional 40% of OPAL gas pipeline's capacity
    1 day ago
  5. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    5 days ago
  1. CHINA RISING: When sleeping giants meet
    14 days ago
  2. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    7 hours ago
  3. Belarus’ retail king Euroopt goes on the road
    20 days ago
  4. STOLYPIN: Russia’s cyber-challenge cuts both ways
    22 days ago
  5. Siemens considers quitting Russia
    11 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss