The idea to merge state-controlled energy firms to create a national champion has surfaced several times since these companies were floated on the Warsaw bourse but the last attempt proposed tying up Lotos with larger rival PKN.
“It would be good to think about some form of strategic alliance between PGNiG and Lotos,” Deputy Treasury Minister Krzysztof Zuk was quoted as saying in daily newspaper Puls Biznesu. “Both companies are working on exploration work on the Norwegian shelf and could join forces.”
PGNiG, whose main business is the extraction, import and distribution of natural gas, also has an crude upstream business.
Lotos also has a small offshore upstream business on the Baltic Sea, but buys the majority of the crude oil it refines.
“Time will tell whether this will be in the form of cooperation or the creation of joint company.”
About a year ago PGNiG bought a 15% stake in three exploration licenses offshore Norway from ExxonMobil.
Lotos has a subsidiary in Norway, whose aim is to gain access to reserves off the Norwegian coast, but has not yet made significant progress to that end. (Reuters)
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
