Poland’s PGNiG Delays IPO, Signs Joint Operations Agreement with LOTOS

Poland’s PGNiG signed an agreement on joint operations with LOTOS Petrobaltic to explore for and produce conventional oil and gas resources, while postponing the planned flotation of its subsidiaries Exalo and PGNiG Technologie.

According to a story published by Bankier.pl, vice president Jacek Murawski said that the restructuring process is continuing, adding that the float would not take place this year.

“We are working on a project. We will give more details after the next quarter,” said Murawski.

His statement came the same day of a press release reporting the agreement with LOTOS Petrobaltic. 

“The strategic objective pursued by PGNiG SA is to increase production form its own fields,” said Jerzy Kurella, acting President of the PGNiG Management Board.

According to the note released on Wednesday, the cooperation is meant to increase the production of gas and crude oil. The Kamień Pomorski licence block, located in the Province of Szczecin, is among the most prospective ones in the region.

The agreement indicates that PGNiG will maintain 51% of the licence, while selling 49% to LOTOS Petrobaltic in exchange for funding a re-processing of the old 2D/3D seismic data and other activities, including also new 3D seismic.

Earlier this month, PGNiG inaugurated the Lubiatów oil and gas production facility, called by the company ‘the largest investment project in Poland’s petroleum production industry in recent years.’