GRANGEMOUTH Refinery owner Ineos is selling its Norwegian oil and gas business after indicating it wants to expand in the UK North Sea.
Ineos has struck a deal to sell all its Norwegian oil and gas interests to Poland’s PGNiG for $615m (£450m). The portfolio includes interests in the bumper Ormen Lange gas field and the Nyhamna gas processing plant.
The deal comes weeks after former BP finance chief Brian Gilvary became executive chairman of the Ineos Energy business.
Mr Gilvary noted: “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.”
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Earlier this month, Ineos Energy agreed to acquire HESS’s Danish subsidiary for $150m. The HESS portfolio includes a 61.5 per cent operated interest in the Syd Arne oil field.
Ineos has used acquisitions to build a significant position on the United Kingdom Continental Shelf. Mr Gilvary has said it would be interested in buying more assets at the right price.
Neivan Boroujerdi, principal North Sea analyst at the Wood Mackenzie consultancy, said Ineos appeared to have got a good price for the Norwegian business.
He added: “With no operatorships from which to apply its low-cost model and mixed exploration success so far, options to grow the business were limited. The move will allow the chemicals giant to focus attention towards its operated positions in UK and Denmark."
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PGNiG has been active in the Norwegian oil and gas sector since 2007.
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