Total to Proceed on Polish Shales

Total SA will continue to develop shale gas resources in Poland despite experiencing an initial setback in exploration activities with partner Exxon Mobil.

Exxon Mobil decided to abandon shale gas exploration in Poland after drilling at two concessions, including Werbkowice permit shared with Total failed to flow at sufficient rates.

In an interview with Bloomberg, Total Chief Executive Officer Christophe de Margerie said the company will pursue the search for shale gas in Poland by drilling another well, even after results didn’t indicate viable quantities of gas.

 de Margerie said that the Frenach major will review results from the two wells drilled so far and may have to “drill differently” or elsewhere.

“The permit is big,” said the Total boss. “It’s not with two wells that we will know,” he said. “That’s the problem with non-conventionals. We find reserves almost well by well.”

“Poland’s potential isn’t written off because there were two wells that gave disappointing results,” De Margerie said, adding that Total and Exxon adopted different strategies. Total is seeking new permits for unconventional oil and gas, whereas Exxon acquired XTO Energy Inc. in 2010 with a view to exporting its expertise in shale drilling to Europe, he said.

The Total CEO has be vocal in expressing his disenchantment with France's position on the developments of unconventional hydrocarbon, declaring that the country should have the “courage” to explore for shale gas.

“When we are in a difficult economic situation like today and we have the possibility to maybe find gas, which is cleaner than oil and coal, and as we are questioning nuclear, it would be too bad not to develop gas,” said de Margerie.