Orlen in advanced talks to buy Kuwait Foreign Petroleum's Norwegian assets -sources
WARSAW/KUWAIT, Nov 14 (Reuters) - Polish state-controlled oil and gas group Orlen is in advanced talks to buy Kuwait Foreign Petroleum Exploration Company's (KUFPEC) stakes in assets on the Norwegian continental shelf, four sources familiar with the process said.
Operating under the name of PGNiG Upstream in Norway, Orlen has been prioritising gas assets to fill up a new pipeline carrying Norwegian gas to Poland via Denmark. PGNiG Upstream has a 14.02% stake in Norway's second largest gas field, Ormen Lange, which is operated by Shell.
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KUFPEC hired Scotiabank earlier this year to manage the sale process for its Norwegian assets as part of its focus on newer exploration and production hubs. The sale was expected to raise $300 million, sources told Reuters in May.
Orlen said on Tuesday that it is constantly monitoring foreign markets in search of acquisition opportunities that match with assets already held, but declined to confirm the talks on KUFPEC's assets.
"All decisions regarding possible investments or capital involvement are made in accordance with corporate governance and communicated primarily through the group's official communication channels," the company said in response to Reuters questions.
KUFPEC was not immediately available for comment.
Under a strategy approved earlier this year Orlen plans to spend 90 billion zloty ($22.14 billion) on investments to expand oil and gas production by the end of the decade.
KUFPEC has stakes in several producing fields on the Norwegian continental shelf, including Gina Krog and Sleipner Vest, where Orlen is also a partner.
It also has a 21.8% stake in the Equinor -operated Eirin gas development, which will be tied back to the Gina Krog production platform with its gas exported via Sleipner Vest. ($1 = 4.0653 zlotys) (Reporting by Marek Strzelecki, Ron Bousso and Ahmed Hagagy; Additional reporting by Nerijus Adomaitis; Editing by Anousha Sakoui, Jan Harvey and Susan Fenton)