Orlen to Increase Spending on Exploration

Poland's largest refiner PKN Orlen plans to spend 22.5 billion zlotys (5.5 billion euros or 7.1 billion dollars) in five years on investments, mainly in hydrocarbon production and power segment.

In its newly released strategy for 2013-2017 the company announced its plans to double spending on growth areas, compared to the previous financial plan approved in 2008, and stressed that it considers upstream and energy generation sectors the crucial part of the strategy.

5.1 billion zlotys or 23 percent of the planned spending are to be directed to the upstream segment, with almost half of it designated for shale gas.

In the press release, the company notes that gas consumption per capita in Poland is less than a half of the EU average.

“The unconventional gas deposits in Poland create a potential to bridge the gap thanks to domestic production, without the need to increase gas imports.”

The company intends to drill at least 50 wells, including production wells in the Lublin Shale license area.

“The planned pace of investments in shale gas projects in Poland will permit production to be launched and operating profit to be generated already in the medium-term perspective, i.e. in 2016.” – the release reads

PKN Orlen through its branch Orlen Upstream has eight exploratory licenses in Poland.

According to Polish media during the press conference the PKN Orlen CEO Jacek Krawiec added that the company still was in talks with foreign partners. However, as he stressed, reaching the agreement may be difficult until the legal framework is at place.

The CEO declared that the firm is able to develop its shale gas project independently.