Poland Eyes Higher Near-term Output

Polish state-backed PGNiG will increase its natural gas and crude oil production by 13% and 12% respectively in the coming few years, it said July 31. It expects that in 2021 it will produce 5.2bn m³ of natural gas and about 1.4mn metric tons of crude oil both in Poland and abroad. 

This year's gas production will amount to 4.6bn m³, inching up to 4.8bn m³ next year and 5.2bn m³ in 2021. Crude oil production will grow from 1.3mn mt this year to 1.4mn mt in 2020 and 2021. 

CEO Piotr Wozniak said the company was always looking at ways to develop upstream capacity in Poland and abroad. "Exploration and production is the most profitable segment of the PGNiG Group’s business. In addition, development of our own gas reserves helps improve the country’s energy security," he said. 

Polish production will go up from 3.9bn m³ this year to 4.0bn m³ in 2021, thanks to new wells in the Podkarpacie region and Polish Lowlands, and reverse a downward trend.

Norwegian production will go up from 0.5bn m³ in 2019 and 2020 to 0.7bn m³ in 2021. However PGNiG is seeking new production assets to supply gas – including 2.5bn m³ from its own production – through the 10bn m²/yr Baltic Pipe. But Wozniak said this would not be at any price: "We select only those assets which promise to be economically viable, with solid rates of return, and are bound to markedly increase the group’s production on the Norwegian continental shelf."  

This year it has bought a 20% interest in the Duva field within the PL636 and PL636B licence areas and a 22.2% interest in the King Lear field in the North Sea within the PL146 and PL333 licence areas. After obtaining the Norwegian administration consents to buy these assets, the company will hold  27 licences in Norway, currently acting as the operator under four of them. 

PGNiG expects to step up its natural gas production in Pakistan to 0.4bn m³ in 2020 and 0.5bn m³ in 2021, up about 100% and 150%, respectively, as new wells are brought on stream.