Polish Oil and Gas Exploration Company S.A. (PGNiG S.A.) and PKN ORLEN will realize a mutual exploration project located in North West Poland. Estimated investment expenditures will equal about PLN 400 million, and PLN 50 million will be spend during the two nearest years.
ORLEN Upstream company, owned by PKN ORLEN, in which PGNiG, operator of the venture, shall take up 51 percents of shares. This is a continuation of initial research and exploration works realized on Polish Lowland by PGNiG.
Initial estimates mention 130 million barrels of oil in geological resources within Sieraków deposit, from which anticipated resources, which can be extracted in Sieraków equal 26 million barrels (3.4 million tonnes). Production from the deposit planned for this phase of identification equals about 15 million barrels (almost 2 million tones) of oil. - Beginning of production from Sieraków deposit is planned for 2018 – said Jacek Krawiec, ORLEN President. President of the concern from Płock hopes that this project shall contribute to the development of ORLEN competence within the scope of upstream.
- This is just the first step towards mutual cooperation of both entities, we just hope that the collaboration will not limit to the territory of Poland – Jacek Krawiec added. Michał Szubski, PGNiG President added that both companies want to end with the inglorious tradition that the planned collaboration never works.
In his opinion, apart from oil, it is also possible to expect up to 500 million m3 of natural gas in Sieraków deposit.
See also: ORLEN and OGEC shall produce oil together