ORLEN Upstream is one of the youngest and at the same time the smallest (currently the employment does not exceed 40 individuals) Polish exploratory companies.
It was established 6 years ago by ORLEN, one of the largest oil companies in Central Europe. The company is exploring two locations (and the region of Lublin is surveyed both in terms of extracting conventional gas as well as from clay shale) in Poland and one abroad but – as Russians say - abroad which is not too far – notably on the Latvian Baltic shelf. This is an off-shore type project carried out together with Kuwaitis of Kuwait Energy Company. On the other hand, the Sieraków project is carried out jointly with PGNiG (Polish Oil and Gas Company) and is shown as the first example of Polish and Polish co-operation domestically.
The company is perceived as one of a few which is attempting to build its market position through smart alliances. Such a move is to include the agreement on co-operation with the AGH University of Science and Technology which has been signed recently. “We will study the sea,” says Wiesław Prugar, President of ORLEN Upstream, but at the same time he reserves that for the time being he means conventional deposits and he approaches the race of certain companies for getting licenses for the shale gas exploration under the Baltic bottom with a certain distance.
The project in the Lublin region is carried out individually by ORLEN Upstream on the area covered by five licenses: Bełżyce, Garwolin, Lubartów, Lublin and Wierzbica where the company performs the role of the operator. The first two wells will be drilled here. One near Wierzbica and the other close to Pałecznica near Lubartów. Before, the reinterpretation of the available archival geological and seismic as well as geochemical data was made and in December 2010 seismic tests were performed in 3D technology on the area of over 300 square km.
On the other hand, the Sieraków project is an exploratory and exploitation project which is carried out by ORLEN Upstream as the minority partner (49%) in co-operation with PGNiG (51%) on the Polish Lowland. The main objective of the work is geological examination of the Main Dolomite structure, confirmation of the occurrence of industrial reserves of the deposit, management and launching of production. At the end of 2010 preparatory work was carried out in order to make exploratory well– 5, and the drilling itself started on 14 January 2011. Geological and technical design of the borehole anticipates drilling through the main dolomite and getting down to the depth of 3350 m. Deposits for extraction are estimated here at approx. 3,5 million ton of oil, and geological resources are estimated at 17-18 million ton, additionally, one may expect approx. 0.5 billion cubic meters of gas, though the optimists claim that the gas resources may be even a few times bigger. The commencement of industrial exploitation of this deposit is planned for 2016. Will the oil from Sieraków get to the refinery plant in Płock? It is difficult to predict today, after all it is closer from here to the refinery on the other side of the Odra river in the territory of the former East Germany.
The Lublin Shale Project is a new project, carried out independently by ORLEN Upstream based on exploratory licenses which it has in the Lublin region. The main actions taken last year as part of this project include the analysis of the available geological information in order to ultimately select the areas with the highest potential of the occurrence of natural gas deposits in clay and shale rock on the license blocks: Garwolin , Lubartów and Wierzbica and the preparation of geological and technical design for obtaining 2D seismic data in the most promising part of the Garwolin block.
The co-operation agreement signed recently with the AGH University of Science and Technology anticipates conducting scientific and educational activities. It is also a response to the growing demand for professional engineering and technical staff in oil industry, as well as the need to change education in particular field. Dynamically growing new market of unconventional resources, and in particular research aspect of explorations, requires innovative solutions – both in the area of technology as well education. The co-operation between the partners foresees, among other: specialised lectures delivered by the ORLEN Upstream staff, organisation of apprenticeships for the University students at the Company as well as internships for PhD students and the University staff. The AGH University of Science and Technology will also establish proprietary post-graduate studies aimed at gaining modern knowledge necessary in the exploratory and extraction work.
The document was signed in Kraków by Vice-Rector for Co-operation and Development of the AGH University of Technology and Science, Professor Jerzy Lis, Dean of the Faculty of Drilling, Oil and Gas of the AGH University of Technology and Science, Professor Andrzej Gonet and Wiesław Prugar, President of the Management Board of ORLEN Upstream. “The strengthening of the co-operation between exploratory companies and universities such as AGH constitutes an important step in the development of the science potential and may be an opportunity for developing own Polish innovative technologies. Not only specialised licenses are needed for explorations and extraction of hydrocarbons from unconventional deposits but most of all high class experts. It is not a secret that there is a shortage of such staff in Poland, so, our co-operation has a chance to revolutionise this part of the labour market,” commented Wiesław Prugar, President of ORLEN Upstream after the signing. “The AGH University of Technology and Science educates experts in practically all areas related with broadly understood power sector. The agreement with ORLEN Upstream will enable us to make such education more attractive and will facilitate even better, direct contact between our students and scientists with the state-of-the-art technologies applied in the exploratory and extraction industry,” stated in turn the AGH Rector, Professor Antoni Tajduś.
One may wonder why does a powerful processing and distribution company need a exploratory and extraction company built from the scratch. Is this the effect of a real need or only a temporary trend to please the shareholders with? President Prugar admits that having gas deposits in Libya or Pakistan today generates more problems than gains. However, own domestic gas deposits for a corporation which is its huge consumer constitute a completely different value because always it is better and more safe to purchase strategic resource from yourself.
Source: Energia Gigawat, 2011-08-04, By: Jacek Balcewicz