Upstream area
Our achievements to date
In 2013, the PGNiG Group was involved in exploration and appraisal work either on its own or in cooperation with partners. In Poland, its exploration and appraisal work was focused in the Carpathian Mountains, Carpathian Foothills and Polish Lowlands. Drilling work in Poland was performed on 27 exploratory wells, including seven research and six appraisal boreholes. A total of 16 wells were tested, including seven drilled in previous years. The tests confirmed the presence of gas in nine wells − four exploratory and five appraisal wells. Seven wells did not flow hydrocarbons at commercial rates.
Two wells were tested in the search for unconventional deposits. Drilling work was performed on eight wells, with six reaching their target depths.
In 2013, in addition to projects undertaken independently, the PGNiG Group was working with other entities in the licence areas of PGNiG, FX Energy Poland Sp. z o.o., and San Leon Energy PLC (the company acquired shares in its former partner, Aurelian Oil & Gas PLC). Furthermore, the PGNiG Group partnered with other entities in carrying out exploratory work in Pakistan, Norway and Libya.
In 2013, PGNiG, Tauron Polska Energia SA, KGHM Polska Miedź SA, PGE Polska Grupa Energetyczna SA and Enea SA held terms of contract negotiations under the framework agreement of July 4th 2012 (concerning the exploration for and production of shale gas and oil within the Wejherowo licence area). The framework agreement expired on December 31st 2013 due to non-fulfilment of certain conditions defined therein.
On August 14th 2013, PGNiG and LOTOS Petrobaltic SA signed an agreement for joint operation within the Kamień Pomorski licence area. The performance of the agreement will be possible upon fulfilment of certain conditions precedent, i.e. with positive tax rulings from the Ministry of Finance and approval of the sub-lease of the mining usufruct (mineral extraction rights) from the Ministry of Environment.
The PGNiG Group continued its exploration and appraisal work in Pakistan. In 2013, the construction of gas pipelines and temporary surface installations was completed and test production from the Rehman-1 and Hallel X-1 wells began. The gas produced is sold to the Pakistani transmission system. Also in 2013, preparatory work began for drilling of the Rizq-1 exploratory well, which is scheduled for completion in 2014.
On December 31st 2012, the Company and its partners launched the production of crude oil and natural gas from the Skarv and Idun fields (Skarv project) on the Norwegian Continental Shelf. The Company has been selling the extracted hydrocarbons since January 2013. In 2013, PGNiG Upstream International held interests in 13 exploration and production licences on the Norwegian Continental Shelf.
In 2013, the PGNiG Group completed preparatory work in Libya and commenced the first round of drilling, which consists of four exploration wells. Work on the first exploratory well was completed. The drilling and production tests on the second well ended in December 2013. Also in 2013, the PGNiG Group completed preparatory work on the third well, while second-stage 3D seismic surveys originally scheduled for 2013 were postponed for future years.
Last year, the PGNiG Group also conducted exploration work within Egypt’s Bahariya licence area (Block 3), where two exploration wells were drilled, but were subsequently abandoned as they did not flow hydrocarbons at commercial rates. The Bahariya licence potential was re-evaluated using newly acquired geological data, which proved that further work was not economically viable. Therefore, a decision was made to terminate the licence and liquidate the Egypt branch.
