PGNiG Upstream Norway AS signs agreement to purchase interest in King Lear field from Total E&P Norge AS

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG”, the “Company”) announces that on June 7th 2019 the Board of Directors of PGNiG Upstream Norway AS (“PUN”), a subsidiary of the Company, signed an agreement to purchase an interest in Licences on the Norwegian Continental Shelf from Total E&P Norge AS (“the Agreement”).
The Agreement comprises the purchase of a 22.2% interest in PL146 and PL333 Licences from Total E&P Norge AS, i.e. King Lear field. The operator of the field is Aker BP (77.8% interest), which acquired interest in the Licences in 2018 from Equinor Energy AS.
King Lear is a gas and condensate field located on the North Sea. According to the Norwegian Petroleum Directorate data, the field has documented recoverable resources of 9.2 bcm of natural gas and 6.5 mcm of oil. The parties agreed not to disclose the value of transaction.
Currently, the Licenses are in the development phase. The investment process is planned for the period of 2021-24, while production is expected to start in 2025. According to the operator’s current data gas production in the part attributable to PUN may reach 0.25 bcm of gas per year.
The Licences has been purchased consistent with the PGNiG Group Strategy for 2017–2022 (with an outlook until 2026), announced in Current Report No. 19/2017 of March 13th 2017.
The Agreement provides for condition precedent related to obtaining the required administrative consents in Norway.
The announcement of information on negotiations and intention to purchase interest in Licences on the Norwegian Continental Shelf from Total E&P Norge AS was delayed on May 22nd 2019 until today pursuant to Article 17(4) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of April 16th 2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.