INEOS Energy on Thursday announced the sale of its oil and gas business in Norway to Poland's PGNiG 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, INEOS' Norwegian subsidiary, produces around 33,000 barrels of oil equivalent per day from the Norwegian Sea, with 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," INEOS said.
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.
Brian Gilvary, Executive Chairman of INEOS Energy said, “This represents another positive step in the INEOS Energy journey. The deal allows us to monetize 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 deal announcement comes just days after INEOS said it would buy Hess' business in Denmark, which consists of operated assets, for $150 million.
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