Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia, the company said in news release Dec. 20.
This transaction follows an agreement, which took effect in May 2018, in which Equinor acquired a 50 % interest in Bałtyk II and Bałtyk III.
“This acquisition strengthens our presence in the Baltic Sea area giving opportunities for scale and synergies in a longer perspective,” Jens Økland, senior vice president for strategy and business development in new energy solutions for Equinor, said in the release.
The project is in an early stage and the companies will form a 50/50 joint venture to further mature the project toward future auction and final investment decision, Equinor said in the release. Equinor will be the manager for construction preparation and the potential construction and operational phases.
The Bałtyk I offshore location license allows for a development of a wind farm with a capacity up to 1,560 megawatts, of which Equinor will hold 50%. The wind farm area is located in the Baltic Sea in water depths of 25 m to 35 m (82 ft to 115 ft).
Recommended Reading
Paisie: Economics Edge Out Geopolitics
2024-02-01 - Weakening economic outlooks overpower geopolitical risks in oil pricing.
Global Oil Demand to Grow by 1.9 MMbbl/d in 2024, Says Wood Mac
2024-02-29 - Oil prices have found support this year from rising geopolitical tensions including attacks by the Iran-aligned Houthi group on Red Sea shipping.
Oil Rises After OPEC+ Extends Output Cuts
2024-03-04 - Rising geopolitical tensions due to the Israel-Hamas conflict and Houthi attacks on Red Sea shipping have supported oil prices in 2024, although concern about economic growth has weighed.
Russia Orders Companies to Cut Oil Output to Meet OPEC+ Target
2024-03-25 - Russia plans to gradually ease the export cuts and focus on only reducing output.
Oil Market Shifting Back to Supply/Demand
2024-03-08 - Stratas Advisors' John Paisie forecasts the price of Brent crude to increase during the second and third quarters of this year and move toward $90/bbl.