Kuwait Foreign Petroleum Exploration Company (KUFPEC) has agreed to divest its oil and gas assets in Norway to Poland’s Orlen in a deal worth $454m (Kd139.95m), reported Reuters, citing Kuwaiti company CEO.
Polish Government-backed oil and gas company Orlen operates as PGNiG Upstream in Norway.
KUFPEC CEO Mohammad Salem Al-Haimer was cited by the news agency as saying that KUFPEC reported profits of around $700m throughout its duration in Norway since 2013.
Al-Haimer added: “This investment is one of the company’s most successful operations, from acquisition to exit.
“It’s a win-win deal for both parties. KUFPEC has achieved its exit strategy and PGNiG has achieved its acquisition strategy.”
KUFPEC, a fully-owned subsidiary of Kuwait Petroleum Corporation, owns stakes in several producing fields on the NCS.
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These fields include the Gina Krog gas/oil field, Sleipner (East and West) gas/condensate fields and Utgard gas/condensate field, among others.
The company also owns a 21.8% interest in the Eirin gas development project, which is operated by Equinor.
The latest deal comes days after Reuters reported that Orlen was in advanced talks to purchase KUFPEC’s interests in assets on the NCS.
The sale forms part of KUFPEC’s efforts to focus on new production hubs and areas of exploration.
In May 2023, KUFPEC selected Scotiabank to manage the divestiture of its Norwegian assets.
By the end of the decade, Orlen is planning to invest 90bn zlotys ($22.14bn) to increase oil and gas output, in accordance with a plan approved earlier this year.
Last month, Orlen and its partners commenced production from the Tommeliten A field offshore Norway.