32
PGNiG
Key Events in 2010:
••
beginning of work on shale gas deposits;
••
increase in natural gas production by 100 million
cubic metres year on year;
••
acquisition of new exploration licences on the
Norwegian Continental Shelf.
The activities pursued by the PGNiG Group’s
Exploration and Production segment comprise
geophysical and geological surveys, as well as
exploration for and production of natural gas and
crude oil. At present, the Group produces natural
gas and crude oil only from Polish felds. Foreign
production is scheduled to be launched in the
second half of 2011, within a licence area located
on the Norwegian Continental Shelf. For its needs,
the segment uses the capacities of the gas storage
facilities in Bonikowo, Brzeźnica, Daszewo, Stracho‑
cina and Swarzów.
Financial Performance
The Exploration and Production segment derives
revenue mainly from unregulated sales of natural
gas and crude oil, as well as the provision of geo‑
logical, geophysical and exploration services. In
2010, the segment posted PLN 588m in net operat‑
ing proft, an improvement of PLN 414m relative
to 2009. In 2010, the Group recorded improved
margins on crude oil sales, driven by a 28% rise in
the selling prices. The higher prices at which sales
were transacted followed from a 29% rise in crude
oil prices on global markets. Other drivers of the
segment’s performance included a surge in rev‑
enue from geological, geophysical and exploration
services provided by service companies (a total
increase of PLN 85m between 2009 and 2010),
and lower costs of dry wells written off, as their
number fell from 16 in 2009 to seven in 2010.
Geological, Geophysical and
Exploration Services
Exploration for natural gas and crude oil is carried
out both in Poland and abroad. Exploration work
consists in analyses of historical and geological
data, seismic surveys and drilling. It is carried
out mostly in reliance on companies of the PGNiG
Group:
••
exploration services – drilling work is performed
by PNiG Jasło, PNiG Kraków and PNiG Nafta;
••
geological services – seismic acquisition,
processing and interpretation of seismic data
and well logging are performed by Geofzyka
Kraków and Geofzyka Toruń;
••
support services – specialist services supporting
the performance of exploration and production
work are provided by Poszukiwania Naftowe
Diament and Zakład Robót Górniczych Krosno.
Exploration
and Production
T h e P G N i G G r o u p c omp a n i e s a r e e n g a g e d i n g a s
a n d o i l e x p l o r a t i o n a n d p r o d u c t i o n p r o j e c t s
b o t h i n P o l a n d a n d a b r o a d – i n A f r i c a , A s i a a n d
E u r o p e . A s a r e s u l t o f e x p l o r a t i o n wo r k , a s we l l
a s g e o p h y s i c a l a n d s e i sm i c s u r v e y s , i n c r e a s i n g
q u a n t i t i e s o f p e t r o l e um c a n b e c l a s s i f i e d a s r e s e r v e s .
A l t h o u g h i n 2 0 1 0 g a s a n d o i l we r e p r o d u c e d o n l y
d ome s t i c a l l y, i n 2 0 1 1 t h e P G N i G G r o u p e x p e c t s t o
l a u n c h p r o d u c t i o n f r om t h e N o r we g i a n f i e l d s .
The Exploration and Production segment’s operating result (PLNm)
2010
2009
2008
2007
2006
588
174
918
1019
988
Mission
Key Figures
Key Events
Letter from the
President of the
Management
Board
Management
Board
Letter from the
Chairman of the
Supervisory Board Supervisory Board
PGNiG on the Stock
Exchange
Strategy for the
PGNiG Group
until 2015
Exploration
and Production