Exploration and Production
Geofizyka Kraków
Geofizyka Kraków SA offers geophysical services (2D/3D vibroseis and dynamite data acquisition), microseismic surveys, well logging data processing and interpretation, measurements, special well interventions, interpretations, perforating and downhole seismic surveys.
In 2013, Geofizyka Kraków SA generated revenue of PLN 153 m, 76% of which was derived from services to customers in Poland, mainly PGNiG Group companies. The company performed 2D and 3D seismic services, seismic data processing and interpretation, and well logging. Geofizyka Kraków SA also provided 2D seismic services to Orlen Upstream Sp. z o.o. and Linc Energy Poland Sp. z o.o., and carried out microseismic surveys for the AGH University of Science and Technology in Kraków. On foreign markets, the company provided 2D and 3D seismic services exclusively to third-party customers such as OMV Exploration & Production GmbH in Austria, Hillerod Varme A/S in Denmark, VP Georgia LLC in Georgia, PROROGO s.r.o. in Slovakia, MOL Oman Ltd in Oman, and performed microseismic surveys for CGG Veritas Services SA of France. Sales of services to third-party customers outside Poland accounted for 24% of the Company’s total revenue.
In 2014 in Poland, Geofizyka Kraków will provide 2D and 3D seismic services, seismic data processing and interpretation, and well logging for PGNiG Group companies and other domestic customers. As part of its foreign operations, the company will continue seismic acquisition for MOL Oman Ltd in Oman, and seismic data processing for customers such as The Earth and Marine Research Administration and CDP Consulting in France.
| Geofizyka Kraków | 2013 | Unit of measure |
|---|---|---|
| Revenue | 153 | PLN m |
| Net profit (loss) | -9 | PLN m |
| Equity | 78 | PLN m |
| Total assets | 218 | PLN m |
| Workforce as at December 31 | 766 | persons |
Geofizyka Toruń
Geofizyka Toruń SA provides a wide range of integrated geophysical services supporting exploration for conventional and unconventional oil and gas, including acquisition, processing and interpretation of seismic data, and also well logging and data interpretation. The company also offers comprehensive geological, hydrogeological and environmental protection services, such as geophysical surveys and geological drilling work.
In 2013, Geofizyka Toruń generated revenue of PLN 339 m. Services to customers outside the PGNiG Group accounted for 58% of total revenue.
On foreign markets, the company provided services to third-party customers. These included acquisition of 2D and 3D seismic data in India, Germany, and Hungary for companies such as Oil India Limited, CEP Central European Petroleum GmbH, GDF Suez E & P Deutschland GmbH, and MOL Hungarian Oil and Gas Public Limited Company.
On the domestic market, the company carried out geophysical work for PGNiG Group companies, as well as FX Energy Poland Sp. z o.o., Orlen Upstream Sp. z o.o., and Chevron Polska Energy Resources Sp. z o.o. The services provided to the PGNiG Group included acquisition, processing and interpretation of seismic data, and well logging.
In 2014, Geofizyka Toruń will continue to work on the acquisition, processing and interpretation of 2D and 3D seismic data and well logging, including data interpretation. On the domestic market, the company carries out geophysical work for third parties, including FX Energy Poland Sp. z o.o., Orlen Upstream Sp. z o.o., Chevron Polska Energy Resources Sp. z o.o., and for PGNiG. On foreign markets, the company will continue data acquisition projects in Germany and Hungary. In addition, the Company also expects to execute a new project involving seismic acquisition work in Tunisia.
| Geofizyka Toruń | 2013 | Unit of measure |
|---|---|---|
| Revenue | 339 | PLN m |
| Net profit (loss) | 21 | PLN m |
| Equity | 204 | PLN m |
| Total assets | 280 | PLN m |
| Workforce as at December 31 | 1 732 | persons |
Exalo Drilling Group
The Exalo Drilling Group comprises Exalo Drilling SA and its subsidiaries: Oil Tech International-F.Z.E. and Poltava Services LLC.
Exalo Drilling SA was established as a special purpose vehicle under the name of PGNiG Poszukiwania SA, which was subsequently merged with five upstream companies of the PGNiG Group. At present, it is a leading provider of onshore drilling and oilfield services in Central and Eastern Europe.
In 2013, the company was engaged in drilling exploration, appraisal, research, production and ventilation boreholes, as well as the performance of specialist well services and geophysical services, mainly for third-party customers.
Exploration, appraisal and research wells were drilled in search for hydrocarbons, copper, and geothermal waters. Drilling services were rendered in Poland and abroad for both the PGNiG Group and for third-party customers. On the domestic market, Exalo Drilling worked for PGNiG, FX Energy Poland Sp. z o.o., Orlen Upstream Sp. z o.o., Chevron Polska Energy Resources Sp. z o.o., Wisent Oil & Gas Sp. z o.o., KGHM Polska Miedź SA, Zielona Góra Copper Sp. z o.o., Mozów Copper Sp. z o.o., and PEC Geotermia Podhalańska SA.
On foreign markets, drilling was conducted in exploration for conventional hydrocarbons for third-party customers in Georgia, Egypt, Ukraine and Lithuania, and for the PGNiG Group in Libya and Egypt. Further, the company executed contracts for production well drilling operations, which were primarily performed abroad and for third-party customers – mainly in Africa (Uganda, Ethiopia, Egypt), Asia (Kazakhstan, Georgia, Pakistan), and Europe (Ukraine).
Exalo Drilling also performed specialist well services consisting of reservoir measurements, application of enhanced recovery techniques, mud, cementing and datawell services, major remedial treatments, workovers and well abandonment services. The PGNiG Group was the company’s main customer for well services. In Poland, the main third-party customer was PEC Geotermia Podhalańska SA, for which cementing services were performed. Services provided abroad included application of enhanced recovery techniques (Russia), as well as remedial treatments and well interventions (the Czech Republic).
| Exalo Drilling Group | 2013 | Unit of measure |
|---|---|---|
| Revenue | 1107 | PLN m |
| Net profit (loss) | -11 | PLN m |
| Equity | 532 | PLN m |
| Total assets | 1330 | PLN m |
| Workforce as at December 31 | 3952 | persons |
PGNiG Upstream International
PGNiG Upstream International AS (formerly PGNiG Norway AS) was established for the purpose of the Norwegian Continental Shelf project, the aim of which is to provide access to new recoverable reserves of oil and gas outside Poland. The principal business objective of PGNiG Upstream International is the exploration for and production of crude oil and natural gas on the Norwegian Continental Shelf. The company has been pre-qualified by the Norwegian authorities as an operator.
On the Norwegian Continental Shelf, PGNiG Upstream International and its partners are implementing the Skarv/Snadd/Idun development project. PGNiG Upstream International holds a 12% interest in the licence. Other interest holders are British Petroleum Norge AS (operator, 24%), Statoil Petroleum AS (36%), and E.ON Ruhrgas Norge AS (28%).
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. Between January and October 2013, the field underwent start-up works, including well cleanout and testing, as well as bringing individual wells onstream. Following this phase, the field is being operated through a total of 16 wells. Hydrocarbons are produced using a new floating production, storage and offloading vessel (FPSO), which is moored in the vicinity of the field.
Moreover, in 2013 the company continued work on the development of the Snadd field and other exploration licence areas. Evaluation of the prospectivity of the PL599, PL600, PL646, and PL648S licences was also carried out.
| PGNiG Upstream International | 2013 | Unit of measure |
|---|---|---|
| Revenue | 1124 | PLN m |
| Net profit (loss) | -25 | PLN m |
| Equity | 306 | PLN m |
| Total assets | 4252 | PLN m |
| Workforce as at December 31 | 28 | persons |
POGC – Libya
The core business of Polish Oil and Gas Company – Libya BV (POGC – Libya) consists in the exploration for and production of hydrocarbons in Libya. The company conducts exploration work on licence 113 located within the Murzuq petroleum basin, under an Exploration and Production Sharing Agreement of February 25th 2008 concluded with the Libyan government.
In 2013, the company completed preparatory work and commenced the first round of drilling, which involved the drilling of four exploration wells. The first exploratory well yielded a natural gas discovery, which was recognised by the company’s Libyan partner, National Oil Corporation. The drilling and production tests on the second well ended in December 2013. Also in 2013, the company completed preparatory work on the third well, while second-stage 3D seismic surveys originally scheduled for 2013 were postponed for future years.
Based on an analysis of the project’s economics, and in particular:
- reassessment of the estimates of hydrocarbon resources of the Libyan licence;
- assessment of future capital expenditure on, and operating costs of, continued exploration work;
- changes in the project schedule;
- effects of the political situation in Libya and uncertainty concerning the extension of the licence, due to expire in September 2014;
as at December 31st 2013 PGNiG decided to recognise a one-off impairment loss on its interest and contributions to equity in POGC – Libya, and a provision for the outstanding licence obligations under the Murzuq project in Libya.
| POGC Libya | 2013 | Unit of measure |
|---|---|---|
| Revenue | 0 | PLN m |
| Net profit (loss) | -9 | PLN m |
| Equity | 353 | PLN m |
| Total assets | 376 | PLN m |
| Workforce as at December 31 | 69 | persons |