Ineos Energy sells Norwegian business to PGNiG for $615m
Ineos Energy is selling its oil and gas business in Norway to PGNiG Upstream Norway for $615 million with the deal covering production, licenses, fields, facilities and pipelines on the Norwegian continental shelf.
Ineos E&P Norge produces around 33,000 BOE 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 rebalances its portfolio in terms of oil and gas and moves Ineos Energy towards a more operated position.
The sale, subject to approval by the Norwegian Ministry of Petroleum and Energy and the Norwegian Ministry of Finance, 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: "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."
It follows the announcement of the acquisition of the HESS business in Denmark, which consists of operated assets.
PGNiG Upstream Norway and its licence partners brought on stream another three wells in the Ærfugl field last November. This will enable the company to increase its total output of natural gas on the Norwegian Continental Shelf to almost 1 bcm in 2021.
Global Offshore rebrands Enelift and invests in global hubs
Global Offshore has rebranded Enelift and will invest "a seven-figure sum" in establishing new support hubs in Houston, Dubai, Singapore, Perth and the Caspian during the next six months.
The investment will cover oil, gas and renewables, mainly concentrating on manufacturing capability with associated R&D, as well as in stock held in the hubs.
The company’s flagship Hinge Lok technology provides aluminium, non-welded light weight transportation cradle for casing and tubing. Enelift now plans to enhance its offering by augmenting its existing solutions with robotics and remote operational and training technology, which will reduce manpower for handling offshore equipment that is transported and stored using the Hinge Lok system.
Enelift is partnering with "a Japanese robotics company" and the technology will be trialed with "a Norwegian operator on a Norwegian drilling rig", according to a statement.
Operating from its bases in Aberdeen, UK and Esbjerg, Enelift was founded by 35-year industry veteran and Managing Director Paul Brebner 10 years ago to offer the offshore energy industries safe, reliable and efficient storage and transportation of equipment.
The expansion plans are bolstered by the appointment of Jim Clark of the Craigendarroch Group to Chairman, and Adam Maitland to Non-Executive Director. Maitland is the Managing Director of Hutcheon Mearns IF, and brings his wealth of expertise in the field of corporate finance.
Brebner said Enelift may be a new name in the market, but the experience it brings is "industry renowned".
"Our solutions are underpinned by safety that enables inefficiencies and their associated costs to be eradicated – meaning operational personnel can focus doing what they do best, safely. We remain committed to providing the safest storage and transportation solutions for equipment in the sector as we grow our global operations," he said.
Clark said the market is changing and its solutions fully support customers’ economic and safety aspirations.
"We are very well placed to take full advantage of increasing opportunities in the Middle East, Africa, Far East and Americas. Safety is our absolute commitment to our customers and our support hubs will facilitate this. Aligning our identity to our entire offering ensures that we will drive our expansion through new products and global support sites across the rest of this year."