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Orlen: PLN 420 M in three years assigned for oil and gas exploration

09-01-2011  News

In the next three years PKN Orlen wants to assign PLN 420 M for prospecting of oil and gas in Poland and abroad – informs PAP President of PKN ORLEN Mr. Jacek Krawiec. The concern is prospecting for, among others shale gas resources in the region of Lublin.
As  Vice-President of Orlen Upstream, a subsidiary company responsible for exploration and extraction,  Mr. Wiesław Prugar explains  PAP -  the company is currently implementing four project, three of which in Poland and one abroad. Along with Kuwait Energy Company (KEC) the Polish company is exploring gas and oil on Latvian shelf of the Baltic Sea.
 
"Orlen Upstream and Kuwait Energy Company have 90 per cent of shares in two prospecting and exploitation concessions. The remaining 10 per cent of shares belong to the Latvian government" - says Mr. Prugar.  He added that the first boreholing  works in the area of one or both concessions have been scheduled for the turn of 2011 and 2012. The project operator, a company of Orlen and KEC, Balin Energy SIA  has already acquired  3D seismic data covering 300 sq km of the concession surface which are now being interpreted.
 
In Poland the concern along with PGNiG is prospecting for oil in the area of Sieraków (Wielkopolskie voivodship). Orlen Upstream has 49 per cent of shares in the Wronki prospecting and exploitation concession located to the south of the complex of oil and natural gas deposits Lubiatów-Międzychód-Grotów which is the largest shale discovered in the recent years.
 
"Works aimed at confirming the presence of deposits are in progress, the chances are that we start production in 2016" – says Mr. Prugar. In Sieraków the first exploratory borehole has started, another two boreholes have been planned for this year.
 
In the so-called Lublin Basin in turn Orlen Upstream has five concessions for prospecting and exploitation of oil and gas (Bełżyce, Garwolin, Lubartów, Lublin and Wierzbica) of the surface of  4.7 thousand sq km. The company is prospecting for conventional oil and gas resources as well as of unconventional gas present in a shale rock (Garwolin, Lubartów and Wierzbica concessions).
 
"From Autumn 2007 to the end of 2009  numerous geological analyses were performed on the basis of which several zones prospective for  conventional oil and gas resources and  unconventional deposits  that is shale gas were selected" – says President Prugar.
 
"First conclusions and recommendations concerning further prospecting of shale gas should be ready by mid 2011" – he adds. Orlen Upstream has planned six exploratory boreholes in the region of Lublin in years 2011-2013. This and next year the company is going to perform boreholing aimed at oil and gas prospecting in this region. "The highest perspectives regard sandy and muddy carboniferous-hosted deposit at a depth of about 1200 to over 3000 meters" – says Mr. Prugar.
 
He informed that until September the Ministry of Environment has issued 70 concessions for conventional and unconventional gas (tight and shale gas) prospecting in Poland. Eleven of them concerned prospecting for unconventional gas, whereas the other 59 were combined concessions for prospecting of conventional and unconventional hydrocarbons. "Five out of 59 combined concessions for conventional and unconventional hydrocarbons prospecting have been granted to Orlen Upstream" – underlines Mr. Prugar.

Source: PAP  [Polish Press Agency] - Julita Żylińska, 2011-01-09
 

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