PKN Orlen Restates Commitment to Downstream Segment

Poland-based PKN Orlen plans to spend PLN 10.8 bn (€2.6 billion) on development projects between 2014 and 2017, with a renewed focus on the Downstream segment, which will account for 59.3% of total expenses.

‘In the Downstream segment, growth-oriented projects will involve improvement of refinery yields, extension of the value chain in the Petrochemicals area (polyethylene, metathesis) and industrial cogeneration in the Power Generation area (Włocławek and Płock CCGT units),’ reads a note released on Wednesday.

Being the Retail segment still a marginal business, PKN Orlen plans to invest PLN 3.2 bn in the Upstream segment (29.6%).

‘In the Upstream segment, in Poland PKN ORLEN will continue oil and gas exploration operations as well as activities designed to adjust production technology to the characteristics of the local unconventional hydrocarbon deposits. Production in Canada is expected to be further increased to 16 thousand boe/day, with concurrent growth of 2P reserves to 53m boe in 2017.’

According to a recent report released by PGNiG, oil and natural gas production in Poland significantly increased. Oil production registered a year-on-year 33% surge, while gas a more modest 3.7% growth. 

“The vision of PKN ORLEN's growth has not changed and the Downstream business remains at the core of its foundation. We perceive the Downstream segment as an integrated value chain, with interrelated operations in refining and petrochemical production, whose efficiency is further supported by state-of-the-art industrial power generation and strong market position… The final element of this development concept is sustainable growth of hydrocarbon production. We are actively exploring for hydrocarbons in our licence areas in Poland and Canada,” Jacek Krawiec, CEO and President of the PKN ORLEN Management Board, commented.