Orlen and PGNiG Explore Collaboration
The state-controlled Polish gas firm PGNiG and the largest refiner in Central Europe PKN Orlen, in which government has a minority stake, are seeking cooperation on upstream projects.
Speaking to the PiN Radio, Jacek Krawiec revealed that PKN Orlen has started talks with PGNiG over collaboration on oil and gas exploration, in Poland and abroad.
"It will concern also - maybe mainly - shale gas" said the Orlen CEO.
"I`m convinced, that we are approaching a new opening in the cooperation between two companies. I think, that our relations will become better, than ever before" said Jacek Krawiec in the interview.
Between them, the two companies hold 23 exploratory concessions, almost one forth of all exploratory licenses issued in Poland.
Last month, the former deputy head of PKN Orlen, Grazyna Piotrowska-Oliwa was picked as the chief executive of PGNiG.
The Orlen CEO also revealed that the company is going to increase "several-fold" its investments in shale-gas exploration and production.
Last September PKN Orlen announced, that it would spend 1.5 bln zlotys on investments in 2012, with half of the sum going to power generation and upstream expenses. Orlen Upstream, the upstream branch of PKN Orlen, added that the first stage of its shale gas exploration program would cost about 500 mln zlotyss.
Krawiec added, that the company plans to drill up to six vertical wells this year. According to the CEO, the exploratory program will be extended by two horizontal wells.
Natural Gas Europe has learned that one of the wells is to be drilled on the Garwolin concession, lying almost entirely in the Mazowieckie region (south of the main concession area secured in Mazowieckie by the ExxonMobil).
Remaining up to five wells will be situated on the Wierzbica and Lubartow concessions in the Lubelskie region.
Orlen Upstream has already drilled two vertical wells in Syczyn on Wierzbica concession area and Berejow on Lubartow concession.
The balance of the company`s concessions in Lubelskie are: Belzyce, Lublin, and Hrubieszow. Orlen Upstream has also two licenses in Lodzkie.
According to Wieslaw Prugar, CEO of Orlen Upstream, recently released and significantly downgraded estimates of shale gas reserves in Poland, will not influence investment plans of the upstream branch of PKN Orlen.
Last Thursday, the management of PKN Orlen recommended paying out no dividend for 2011. Early this year the treasury minister Mikolaj Budzanowski suggested, that payment of dividend by the refiner, will depend on its investment plans.