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Operations in Poland

The PGNiG Group is the leader of the Polish hydrocarbon exploration and production market. The company accounts for 90% of total gas production. With its oil production volume of 750,000 tonnes in 2016, PGNiG Group accounts for 20% of total oil production in Poland. As at December 31st, 2016, PGNiG held 48 licences for exploration and appraisal of crude oil and natural gas deposits. In 2016, PGNiG was involved in crude oil and natural gas exploration and appraisal projects in the Carpathian Mountains, Carpathian Foothills and Polish Lowlands, both on its own and jointly with partners. Drilling work in areas covered by licences awarded to PGNiG was performed on 19 boreholes, including 12 exploration and 7 appraisal wells. As at the end of December 2016, formation test results were obtained from 14 boreholes (10 exploration and 4 appraisal wells), including 2 where drilling was completed in 2015.

Map of licences and boreholes

In 2016, 12 wells, including 8 exploration and 4 appraisal wells, were drilled with positive results. 2 exploration wells failed to yield a commercial flow of hydrocarbons and were abandoned. In 2016, 9 production wells were classified as positive. At the same time, 3 wells were abandoned. In 2016, workovers, enhanced recovery treatments and tests were performed on 4 research (core) boreholes, 3 exploration wells, 2 appraisal wells and 4 production wells.

No. of production facilities
Sanok Zielona Góra
Gas production facilities 18 11
Oil production facilities 5 2
Oil and gas production facilities 13 5
Total 36 18

In 2016, PGNiG conducted joint operations with other entities in licence areas awarded to PGNiG, FX Energy Poland Sp. z o.o., LOTOS Petrobaltic SA and ORLEN Upstream Sp. z o.o. Furthermore, PGNiG collaborated with other entities in exploration work carried out in Pakistan and Norway.

Recoverable reserves in Poland in 2012−2016

mm boe




Proved and unproved reserves in 1989-2018 in Poland

mm boe


yearassigned reservesto be assigned, depending on test results from exploration wellsunassigned reservesreserves currently being assignedto be assigned, depending on test results from production wells

Sales of key products

The main products sold by the Trade and Storage segment are crude oil, high-methane gas and nitrogen-rich gas. Other products, obtained in the process of crude refining, include crude condensate, sulfur and propane-butane. Some of the produced nitrogen-rich gas is further treated into high-methane gas at the Odolanów and Grodzisk Wielkopolski nitrogen rejection units. Apart from high-methane gas, the cryogenic processing of nitrogen-rich gas yields such products as liquefied natural gas (LNG), gaseous and liquid helium and liquid nitrogen. In crude oil trading, in 2016 PGNiG continued its policy of trading with major Polish and foreign players in the fuel sector. Rail deliveries of crude oil (64% of sales) were made to the refinery of the LOTOS Group in Gdańsk and to Orlen Południe’s Trzebinia Production Plant (the ORLEN Group). In 2016, crude oil was also delivered by road − to Orlen Południe’s Jedlicze Production Plant (6% of sales), and via the PERN pipeline − to TOTSA TOTAL Oil Trading S.A. (30% of sales). In 2016, Brent crude traded at USD 43.47/bbl on average, with the prices fluctuating from USD 28/bbl in January to USD 55/bbl in December.

1 barrel is equal to approximately 0.136 tonnes or 159 litres

Seismic surveys

In 2016, GEOFIZYKA Toruń, GEOFIZYKA Kraków and other companies acquired 168.5 km of 2D seismic data and 576.7 km2 of 3D seismic data. The largest 2D and 3D projects in 2016 included Korczowa 2D (76.5 km), Hoczew-Lutowiska 2D (60.9 km), Przemyśl 3D (164.6 km2) and Wańkowa-Bandrów 3D (120.5 km2).

2d seismic data
Reflection seismology surveys consisting in registration of seismic waves generated from a point and recorded along a designated line
3d seismic data
Reflection seismology surveys consisting in registration of seismic waves generated from a poont and recorded over a designated area

Exploration for shale gas

Even though the exploration for unconventional shale gas deposits in Poland has not been successful, we have gained skills in using new technologies to drill and access formations previously considered unproductive, mainly because of very poor reservoir properties. The geological conditions in Poland create a need to explore for hydrocarbons in formations where no large-scale extraction has taken place so far, mainly due to technological constraints. Knowledge gained during the search for shale gas deposits can be drawn on to facilitate the exploration and extraction of tight gas and coal bed methane. The projects currently under way in the Carpathian Mountains (e.g. Siedleczka − tight gas) and in Upper Silesia (Gilowice − coal bed methane) are good examples in this respect. It ought to be noted that the opening of new horizons in the Siedleczka and Kramażówka projects has brought measurable effects, namely an increase in gas reserves. The widespread use of directional and horizontal drilling, combined with advanced methods by means of which access can be gained to formation areas with low or very low permeability, offer opportunities for acquiring new areas for petroleum prospecting in Poland. The daily rate system adopted for drilling works has attracted to Poland the most advanced technologies. By opening to a wide market of services, PGNiG specialists were able to learn about the technologies and acquire skills to use them in practice.

coal bed methane
Form of natural gas extracted from coal beds
Daily Rate
The rates a drilling contractor receives for a drilling rig from an oil company or operator