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ORLEN and PGNiG /OGEC/ will produce oil together

23-06-2009  News

​Polish Oil and Gas Exploration Company S.A. (PGNiG S.A.) and PKN ORLEN, the biggest Polish oil companies break the ice and begin cooperation as far as oil exploration is concerned. – We have decided to stop talking about big issues and begin with a venture, which may seem small, yet feasible. Cooperation within the Sieraków project will allow us to separate facts from myths, which hampered collaboration between the two companies – said Michał Szubski, PGNiG President. Sieraków is located in Gorzów Wielkopolski area, near prospective PGNiG Lubiatów-Międzychód-Grotów mine
- The production will start in 2018. Investment expenditures during the first two years shall equal PLN 50 million. In general, the project will cost about PLN 400 million – says Jacek Krawiec, ORLEN President.
The companies shall divide costs proportionally, according to their shares: ORLEN – 49 percents, PGNiG – 51 percents. The similar situation will happen with revenues. Oil resources, which can be extracted in Sieraków are estimated for 26 million barrels, and the companies plan to extract 15 million barrels (2.5 million tones) during the first phase of extraction. In comparison, during the last year PGNiG extracted 496 thousand tonnes of oil, which is 6 percents less than in 2007. Cooperation with ORLEN is a big change for PGNiG, which until now extracted oil and gas on its own.
- All over the world, usually several companies cooperate within one exploration project, in order to divide the financial risk related with high investment costs. We would like to have a similar situation in Poland – says Michał Szubski.
Currently, PGNiG owns 30 percents of concession areas in Poland. ORLEN also tries to seek for hydrocarbons in the country – it has a license for 5 thousand km2 within the Lublin area. – In autumn we shall begin seismic tests. When the project shall enter into realization phase and shall be mature enough to invite partners to cooperate, PGNiG shall be the first of them – announces Wiesław Prugar, Manager of PKN ORLEN Research and Exploration Department.

Source: Puls Biznesu, Page No.: 11, author: Anna Bytniewska 
 

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