PGNiG Upstream Norway, a Norwegian subsidiary of Polish state-owned PGNiG, has concluded the purchase of the Norwegian oil and gas business of Ineos Energy for $615m.

The transaction involved Ineos Oil & Gas’ stakes in production, licences, fields, facilities, and pipelines, located on the Norwegian continental shelf.

The assets of the company’s Norwegian subsidiary Ineos E&P Norge include 22 production licences and an 8.2% stake in the Nyhamna terminal.

Ineos Energy executive chairman Brian Gilvary said: “This represents another positive step in the INEOS Energy journey. The deal allows us to monetise a non-operated, predominantly gas portfolio at an attractive price compared to our hold value.

“We also balance our portfolio of oil and gas and open up new opportunities to reinvest further into the energy transition.”

With the transaction, PGNiG Upstream Norway is expected to significantly increase its hydrocarbon reserves to 331 million barrels of oil equivalent (MMboe).

In addition, the acquisition is anticipated to expand the company’s annual gas production by approximately 1.5 billion cubic metres (bcm).

In a press statement, PGNiG said: “Taking into account the projected production volumes from the previously acquired licences, next year the PGNiG Group’s output of natural gas from the Norwegian Continental Shelf will reach approximately 2.5bcm. This means that the target set in the Group’s Strategy for 2017-2022 will be met.”

Separately, PGNiG has partnered with Qatar-based Black Cat Engineering & Construction to cooperate on oil and gas production projects in the Gulf region.

The firms have agreed to work on the development of a cooperation agreement in the area of hydrocarbon production.

Additionally, the partners intend to prepare a joint offer, including digital solutions, for the markets of the largest crude oil and natural gas producers.