Orlen Upstream, a subsidiary of Poland’s largest oil company PKN Orlen, has agreed to acquire 100 percent of shares in Canadian sector company TriOil Resources. The deal is valued at zł.735.7 million, including zł.562.9 million in cash.
The takeover should go through in mid-November
Courtesy of PKN Orlen
The takeover is expected to be completed in November this year.
“We plan to use TriOil as a stepping stone to expand into the North American market,” said PKN Orlen’s CFO Sławomir Jędrzejczyk at the press conference announcing the deal. He added that even though the company plans more acquisitions in the future it is unlikely that they will be carried out this year.
Thanks to the deal, PKN Orlen will became an oil producer, as TriOil has its own oil fields in the Canadian province of Alberta, with daily output of some 4,000 barrels of oil.
“We will gain access to production fields and will diversify our asset portfolio geographically,” Orlen’s chief executive officer Jacek Krawiec said in a statement.
More importantly, however, the Polish oil giant will acquire Canadian know-how and technology. In 2010 TriOil, using horizontal drilling and new multi-stage fracturing technologies, gained access to new resources. “TriOil represents not only attractive assets, but also a team of professionals with unique expertise, which will be essential to achieving synergies that will be a part of our current projects as well as helping in the search for further growth opportunities,” said Wiesław Prugar, Orlen Upstream’s CEO.
In mid-November, TriOil’s shareholders will vote on whether to approve the deal.
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