PKN Orlen to Buy Two Upstream Companies
Poland’s PKN Orlen continues expansion of its exploration and production portfolio, entering into an agreement to acquire all outstanding shares of FX Energy, and acquiring an upstream company in Canada.
“In line with our strategy in the upstream segment we strive to achieve potential production of 6 mln boe/y in 2017. Today we initiated the process of acquisition of FX Energy, which is the next step in building the upstream portfolio in Poland and abroad. This will allow us to diversify it through expanding our conventional assets and commence production of hydrocarbons by PKN ORLEN in Poland” Jacek Krawiec, President & CEO of PKN Orlen, said in a note released on Tuesday.
The total transaction value was estimated at USD 119 million (ca. PLN 442 million).
The assets owned by FX Energy in Poland are located in two areas (Fences and Edge) in the Lowland Poland. FX Energy also produces crude oil from conventional assets in Montana and Nevada, USA.
A few hours later, PKN Orlen entered into an agreement to buy 100% stake in Canada’s Kicking Horse Energy for approximately USD 273 million (ca. PLN 1 023 million)
“Orlen Upstream Canada began operations on hydrocarbon deposits in Alberta two years ago, following the acquisition of TriOil Resources. Since that time, we have been able to significantly increase our resource base and production volumes. This new transaction will considerably strengthen our position in this area”, Krawiec commented in a second note.
The two transactions follow Monday’s “inauguration” of the Swinoujscie LNG terminal in Poland.
Bloomberg wrote on Monday that the Prime Minister Ewa Kopacz opened the country’s first terminal, but the LNG terminal operator Polskie LNG speaks in different terms, explaining that the the contractor and the investor of the LNG Terminal in Świnoujście signed the certificate of assembly completion for all critical systems.
‘It marks the finalization of crucial construction works at the project. Currently, the installation is under commissioning preparing it to receive the first cargo of liquefied natural gas form Qatar’ reads the note released on Monday.