Exploration Impetus in Poland Weaker than Expected

34 exploration wells, not 45 as previously assumed, are to be drilled by the end of the year in Poland - announced the Environment Ministry.  

"We had expected that by the end of the year 45 wells would be drilled. At the moment we do not expect there would be more than 34" - the National Geologist and deputy Environment Minister announced after the parliamentary energy subcommittee meeting. Piotr Wozniak added that 30 wellbores have been drilled as far, seven of them fractured.

Corrected data illustrate that the exploration for shale gas in Poland is not gaining expected impetus with 18 wells anticipated now in 2012 versus 3 in 2010 and 13 in 2011.

Growing uncertainty surrounding regulation framework, along with obstructive bureaucracy, are widely considered decisive reasons for the investors' caution.

Piotr Wozniak said that working on new regulations have proved to be extremely difficult. The head geologist, who is one of several ministers engaged in dragging internal negotiations within the government, suggested that further uncertainty surrounding regulations was delaying exploration progress.

The minister noted that concession holders postpone further investments. Piotr Wozniak added that "credible foreign investors are needed, and quickly" and argued that state-controlled domestic oil and gas firms PGNiG, Orlen and Lotos are not able to develop production on the scale needed to prepare the country for the internal European energy market in 2014.

The program of shale exploration by state-controlled oil and gas companies, supported financially by several utilities and copper mining company KGHM is strongly promoted by the Minister of Treasury Mikolaj Budzanowski.

The Treasury Minister, also taking part in internal negotiations, has recently voiced his hope that the exploration effort will be soon boosted by highly promising tests results.