Lotos plans more upstream assets in Norway
April 30, 2014
The state-controlled fuel firm Lotos is in talks with several potential partners on acquisition of further upstream assets in Norway and hopes to conduct acquisition either in 2014 or in 2015, deputy CEO for upstream Zbigniew Paszkowicz told reporters on Tuesday.
"We are conducting talks on further acquisition of production assets in Norway, we are talking to more than one partner," Paszkowicz said.
Geographically this concerns mainly Norway," he added.
"We are interested in an asset of similar size as Heimdal, we want one larger deposit with similar production or several smaller deposits."
The transaction could take place in 2014 or 2015, Paszkowicz added.
Lotos expects investment spending similar to USD 176 million it spent on Heimdal project assets, Paszkowicz said.
Last year, Lotos agreed to buy shares in 14 oil and gas licenses on the Norwegian Continental Shelf from Centrica - the so-called Heimdal assets - for $176 million to boost production and diversify its upstream operations. The purchase was supposed to allow Lotos to take advantage of a tax shield linked to the investments Lotos made on the Yme field.