ORLEN Upstream and Polskie Górnictwo Naftowe i Gazownictwo have signed a next agreement regarding potential collaboration in the exploration of hydrocarbons. The agreement concerns disclosing of 3D data acquired during the “Potycz-Garwolin” seismic survey to PGNiG and commencing collaboration at Garwolin license - part of the Karbon project conducted by the ORLEN Group. The partners are now working together in western, central and south-eastern Poland.
Thanks to the agreement ORLEN Upstream and Polskie Górnictwo Naftowe i Gazownictwo will expand the current scope of collaboration by a part of the Lublin Basin, covered by a section of the Garwolin licence (24/2007/p). ORLEN Upstream will remain the operator of the joint operations. In central Poland, both companies are already cooperating under the neighbouring Blok 255 license (10/2014/p), which belongs to FX Energy from the ORLEN Group.
The agreement expands the scope of the current cooperation in that region by including a section of the licence covered by the 3D seismic image prepared by the ORLEN Group in the 1st half of 2016. Seismic data acquisition was performed in order to confirm the presence of potential hydrocarbon accumulations in the Carboniferous and Devonian formations. Once the data interpretation process, scheduled for mid-2017, is completed, the parties will decide whether to continue their cooperation. Until 2009, natural gas had been produced in that area from the Wilga deposit, discovered jointly by PGNiG and FX Energy, which justify a positive initial assessment of this area's potential.
In July 2016, ORLEN Upstream and PGNiG signed a letter of intent on cooperation in exploration, development and production of hydrocarbons in new areas in Poland. One of the regions discussed with regard to the potential collaboration was the Lublin Basin. This agreement is therefore a result of the letter of intent, concluded several months earlier, which initiated analytical works on the potential direction for expanding the scope of the partnership.
ORLEN and PGNIG have been carrying out joint operations with relation to hydrocarbon exploration and production since 2007. Currently, the companies collaborate on four joint projects, covered by 14 domestic licences in western Poland (Sieraków and Płotki), in central Poland (Warsaw South) and in the south-eastern part of the country (Bieszczady). Joint seismic and drilling works are ongoing, alongside with preparations for starting production from deposits found in several locations in central and southern Poland. Last October, works on the Karmin Near-Well Zone (Płotki) construction were completed, which brought an increase in the joint daily production rate. With regard to the deposits exploited on the basis of the joint operations agreement between the partners, the daily production level is estimated at 2.7 MBOE/D.