PGNiG Issues Guarantee to PGNiG Norway
Pursuant to the provisions of the Agreement, PGNiG has issued a guarantee to PGNiG Norway in the amount of EUR 627,555,648.36, i.e. the equivalent of PLN 2,308,902,741.45, as translated in accordance with the exchange rate table prevailing on October 19, 2007.
The guarantee is effective until 1 January 2050.
The agreement concerns the provision of security by PGNiG with regard to the fulfillment of certain obligations of PGNiG Norway arising under the licenses or by operation of the law with respect to, inter alia, the Norwegian government and certain Norwegian entities. The provision of the guarantee is required under Par. 10-7 of the Norwegian Oil Operations Act of 1996. The guarantee is a standard document used customarily in production operations in Norway.
The guarantee is secured with a recourse note issued by PGNiG Norway.
For the issuance of the guarantee, PGNiG will receive a mutual consideration from PGNiG Norway in the form of the right of first refusal to purchase a part of the oil and gas production.