Horisont Energi signs SPA where PGNiG Upstream Norway acquires a 50% participating interest in Polaris and is willing to become operator
12. December 2023
12. December 2023
SANDNES, Norway 11 December 2023: Horisont Energi (EURONEXT: HRGI) has signed a Sales and Purchase Agreement (SPA) where PGNiG Upstream Norway AS (PUN) acquires a 50% participating interest in the CO2 exploration licence EXL003 Polaris – so that both companies will hold 50% each. The licence group has at the same time applied for PUN to be appointed operator.
The effective date of the SPA is 1 December, whereas the completion date will be no later than 31 December 2023. The SPA is subject to approval by Norwegian authorities.
“The Polaris project has the potential to contribute to emission reductions at an industrial scale and is representative of the rapid development of the CCS industry in Norway and Europe. Polaris will also play an integral role in the Barents Blue clean ammonia project,”
– says Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi
The licence group has also submitted an application to the Norwegian authorities for PUN to become the new operator in the licence.
“We are embarking on another project aimed at fortifying ORLEN’s standing as a regional leader in the energy transition. CO2 capture and storage will play a pivotal role in delivering the Group’s climate policy, also enabling us to introduce a new carbon management service. With soaring CO2 allowance prices, carbon storage becomes crucial for sustaining the competitiveness of certain industries in Poland and other EU countries. The growing interest in carbon storage services underscores the significance of today’s transaction, granting the ORLEN Group an interest in the Polaris licence in the Barents Sea, designated for carbon dioxide injection. The project will enhance our capabilities and know-how in offshore CO2 storage, a valuable asset that can also be leveraged in Poland,”
– said Daniel Obajtek, ORLEN CEO and President of the Management Board.
The application for the Polaris exploration licence EXL003 was submitted in 2021, and formally awarded on June 10, 2022.
About PGNiG Upstream Norway (PUN) and ORLEN
PGNiG Upstream Norway ranks among the top 10 oil & gas companies operating on the Norwegian Continental in terms of reserves and output. Its natural gas production plays a vital role in securing the energy needs of Poland. PGNiG Upstream Norway is part of the ORLEN Group, the largest energy company in Central and Eastern Europe, whose operations span the power generation, refining, petrochemical and retail sectors, among others. Its products are available in 90 markets, reaching 100 million customers. ORLEN was the region’s first major energy company to announce a target to achieve carbon neutrality by 2050. By 2030, it will spend PLN 120 billion (almost USD 30 billion) on green investments including offshore and onshore wind farms, photovoltaics, CCS, biofuel, and green hydrogen production. https://www.orlen.pl/pl https://norway.pgnig.pl/