Orlen Looks to Transform Itself

PKN Orlen SA, the Polish based refiner is looking to transform itself.

The company wants to launch its upstream business next year and plans a strategy overhaul in the second half of 2011, according to its chief executive.

"The aim is to restructure PKN into a multi-energy company with its own oil and gas extraction and energy production," Jacek Krawiec told daily Rzeczpospolita.

With an eye to regional competitors MOL Group and OMV, Orlen is hoping to enhance shareholder value.

Shale gas exploration may form a very important element of this strategy.  Orlen holds six concessions for unconventional gas and is investing approximated 50 million Euros on the search and extraction of shale gas though its subsidiary, Orlen Upstream.

Orlen has begun to undertake seismic work on its concessions in the region of Lublin, the results of which are expected in mid-2011.  The company plans two wells in the second half of 2011, and another in the first half of 2012.

The company is reported to have concluded negotiations that will see it becoming a significant shareholder in a number of U.S. shale gas fields owned by an unnamed party. In return, Orlen will offer its new partner access to its Polish shale gas concessions.  Read More HERE

Krawiec said that the company was looking towards working with an experienced partner in the exploration and exploitation of shale gas.

Commenting on the recent action by France to bans shale gas exploitation, the Orlen chief said that EU energy solidarity should take into account country-specific or broader region, and not restrict opportunities for development in the name of the interests of various lobbies.

Source: Rzeczpospolita (in Polish)