PGNiG Secures Financing for Total E&P Norge’s Assets, Eyes New Assets

PGNiG Upstream International executed a USD 400m credit facility agreement with Societe Generale, BNP Paribas, ING, HSBC, Citibank, CACIB, SEB and Natixis.  

‘The primary use of proceeds from the facility will be early payment of some of PUI’s outstanding debt, including the entire debt contracted to finance acquisition of assets from Total E&P Norge in 2014’ reads a note released on Thursday.  

According to the company, the loan will give PGNiG the opportunity to freely purchase other production assets on the Norwegian Continental Shelf.

‘The funding will also support the ambitious development plans for the two new oil and gas fields − Gina Krog and Snadd.’

Also on Thursday, Norwegian Petroleum Directorate reported July gas production higher than expectation. Norway’s preliminary figures also hint at production sensibly stronger than in July 2014.

‘Total gas sales were about 9.6 billion Sm3, which is 1.3 GSm3 more than previous month’ NPD wrote on Thursday.  

Gas real production was higher than expected for the second month in a row.  

Also on Thursday, Statoil reported positive developments in the North Sea.  

‘The first piece of the Johan Sverdrup development has now been completed and installed on the field in the North Sea’ reads a note released by the Norwegian company. 

Heerema Marine Contractors were responsible for design, building and installing the pre-drilling template. 

“We have completed and installed the first piece of one of the largest industrial projects in Europe. We still have a long journey ahead in the Johan Sverdrup development, but we are very pleased that we have completed and installed the subsea template without serious incidents and according to plan. This is a good start according to the required quality and precision standards for successful implementation of the development,” Kjetel Digre, head of the Johan Sverdrup field development, noted. 

According to some analysts, Norway is poised to reach an eight-year high. Output from the Troll field is set to climb 23 percent to 33.5 billion cubic meters (1.2 trillion cubic feet) in the year through September.