Bureaucratic Delays Impact Poland's Shale Promise

The slow pace of legal and fiscal reforms as well administrative delays are impacting Poland's shale gas potential.

Speakers and attendees at the European Unconventional Gas Summit commented that further hinderances would result in explorers evaluating opportunities in other countries such as Ukraine or the UK.

Citing an example of excessive bureaucracy in obtaining shale-gas exploration permits, Wes Skrobowski of Wisent Oil & Gas said that explorers were required to obtain more than 30 different environmental permits.

“What we desperately need is a kind of deregulation that will simplify the issuing and obtaining of permits to explore shale gas,” said Tomasz Gryzewski of Talisman Energy.

Nearly two years ago, Talisman’s Country Manager declared Poland the pre-eminent place for shale gas. But recently, media reports have indicated the Canadian company was pulling out of Poland.

“But things are moving so slowly here. You may see a couple of big players pulling out soon," commented Gryzewski.

Shale gas companies are also concerned that a planned new hydrocarbons laws will not take into account an exceptionally capital intensive nature of unconventional projects. There are fears that proposed taxes will exceed the 40 percent level of the total tax burden and in effect slow the pace and scope of exploration works.

See also: PGNiG: Flaming Optimism    Talisman Energy: What's Next?