PGNiG in Shale Gas Talks with Foreign Partner

PGNiG's deputy CEO has revealed that the company is in talks with a foreign player in respect to the development of shale gas in Poland.

"Yes, we are in contact with one foreign partner," Polish media quoted Marek Karabula in response to reporters` questions.

According to tvn24.pl and wprost.pl, Mr. Karabula declined to go into details, but said that a partner would bring both "investment and know-how".

He added, that current talks were preceded by similar contacts last year. "Our partners concluded, that data we passed to them, did not provide conditions for further talks,"  Karabula is quoted as saying.

PGNiG holds 15 exploration licenses in Poland. Earlier this week it started its third drilling in shale rocks of Lubelskie, in Lubycza Krolewska, close to Polish-Ukrainian border.

To finance its exploration efforts, the state-controlled company is in discussions to create a joint shale gas company with copper giant KGHM and utilities: PGE and Tauron. Several weeks ago some Polish media suggested that Poland's Treasury Minister has instructed that domestic alliances were to be given priority over foreign partnerships.

Yesterday, Treasury Minister Mikolaj Budzanowski reaffirmed that the government is determined to support domestic shale gas production. Budzanowski said that Poland must improve its negotiation position before renegotiations of long-term gas contract with Russia start at the end of the decade.