Poland Shale Shuffle (Again)

Piotr Wozniak, Poland’s Deputy Environment Minister and Chief National Geologist, has been removed from his position as the eastern European nation struggles to regain its position as the leader in the development of shale gas in Europe.

Environment Minister Maciej Grabowski dismissed Wozniak, replacing him in both positions with Slawomir Brodziński. Wozniak was responsible for drafting laws setting out regulations for the development of the shale gas industry and for licensing procedures. 

A proposed hydrocarbon extraction law has yet to be adopted adopted by the government due to a dispute between the Ministry of Environment and the Ministry of the Treasury over the role of the proposed state-owned operator National Mineral Energy Operator (“NOKE”) which would enter partnerships with companies operating in Poland as a minority shareholder.

Minister Grabowski commented that Poland might be willing to drop the concept of a NOKE type body in order to move forward drilling and development.

 “NOKE is a tool to reach a goal,” Grabowski said. “If we can find a formula that will protect the interests of the State Treasury and will be safe for the environment, I’m open to several options.”

In November, Prime Minister Donald Tusk replaced the then Environment Minister Marcin Korolec with Grabowski, citing the need to speed up regulations shale gas.

Korolec wanted to bring all aspects of shale gas production, including NOKE, under the control of the Ministry of the Environment, which in his view minimized the risk of regulation being imposed at the EU level. Meanwhile, the Treasury wanted to NOKE subject to its authority.

The Polish Exploration and Production Industry Organization (OPPPW) have been critical of the bureaucratic process and of the draft laws citing that they will increase investment risk. ExxonMobil, Talisman's and Marathon have already withdrawn from activity in Poland.