Key Events
- January
On December 31st 2012, production of crude oil and natural gas was commenced on the Skarv field at the Norwegian Continental Shelf. The PGNiG Group holds a 11.92% interest in the Skarv licence, while BP is the project’s operator. With the production launch, PGNiG became the first Polish company to produce significant volumes of oil and gas under an international project. It was also PGNiG’s first offshore production venture.
- February
On February 19th 2013, the President of the Energy Regulatory Office announced that all energy companies licenced to trade in gas fuels could apply for an exemption from the requirement to submit gas fuel tariffs for approval where gas fuels are sold to energy companies for trading. PGNiG believes that this exemption will have a positive effect on the liquidity of the wholesale market, including the exchange market, which in turn will benefit the other gas market segment.
On February 1st 2013, PGNiG Poszukiwania SA was merged with five other companies of the PGNiG Group: PNiG Kraków SA, PNiG NAFTA SA, PNiG Jasło SA, PN Diament Sp. z o.o. and ZRG Krosno Sp. z o.o., all of which were active in the area of drilling and oilfield services. The completed consolidation of the exploration and oilfield service companies in the Exploration and Production segment followed from the provisions of the PGNiG Group’s ‘Short-Term Value Creation Strategy in 2012–2014’.
- March
PGNiG received the ‘Bulls and Bears’ award for WSE-listed companies from Gazeta Giełdy Parkiet. This time the Company was honoured in the ‘WIG-20 Company of the Year’ category.
PGNiG completed final acceptance of the Lubiatów–Międzychów–Grotów oil and gas production facility. The project, being one of the largest and most advanced Company’s investments in the recent years, increased Poland’s oil and gas production from conventional deposits.
- April
The PGNiG-led consortium succeeded in obtaining financing for its projects as part of the first contest held under the Blue Gas programme organised by the National Centre for Research and Development. The total cost of the projects amounts to PLN 180 m, of which PLN 90 m is to be covered with the funds provided by the National Centre for Research and Development.
PGNiG and TAURON Polska Energia completed the process of securing financing for the construction of Poland’s largest gas-fired CHP plant, to be located in Stalowa Wola.
On April 5th 2014, the press published information that a memorandum on the construction of the second leg of the Yamal-Europe natural gas pipeline was signed by representatives of OOO Gazprom Export and SGT EuRoPol Gaz SA. At its meeting on April 24th 2013, the PGNiG Supervisory Board heard the Management Board’s explanations of the circumstances surrounding the preparation and execution of the memorandum. Having reviewed the relevant documentation, the Supervisory Board took a negative view of the position and actions of the President of the Management Board, Ms Grażyna Piotrowska-Oliwa, and Vice-President of the Management Board, Chief Commercial Officer, Mr Radosław Dudziński. On April 29th 2013, the Supervisory Board resolved to remove Ms Grażyna Piotrowska-Oliwa and Mr Radosław Dudziński from the PGNiG Management Board.
- May
On May 22nd 2013, the Annual General Meeting of PGNiG granted discharge to all members of the Company’s Management and Supervisory Boards in respect of their duties in 2012, and made a decision on the distribution of net profit for the 2012 financial year. The dividend for 2012 was paid out to the shareholders from PGNiG’s net profit, which last year amounted to PLN 1,918.5 m. PLN 767 m was allocated for the dividend payment, and the dividend amount per share was PLN 0.13.
- June
PGNiG Upstream International AS was awarded interests in four exploration and production licences in Norway as part of the 22nd licencing round carried out by the Norwegian Ministry of Petroleum and Energy. Two licences are located in the Norwegian Sea, and the other two in the Barents Sea.
PGNiG launched natural gas production from two wells in the Rehman field, located in the Kirhtar licence area in Pakistan. Both production and sales reached 295 m³ per minute. The gas is fed to the Pakistani transmission system. Initially, during test production, the wells can provide around 100m m³ of gas per year. Test production is scheduled to continue for 22 months.
- July
On July 1st 2013, pursuant to the PGNiG Group’s ‘Short-Term Value Creation Strategy in 2012–2014’, the PGNiG Group executed the merger of:
- six gas distribution companies (Pomeranian, Greater Poland, Lower Silesian, Upper Silesian, Carpathian and Mazovian) through the acquisition of their shares by the newly established Polska Spółka Gazownictwa Sp. z o.o., and their transformation into the company’s regional branches. The objective behind the consolidation was to adapt the company to new conditions prevailing on the gas market during its deregulation and opening up to competition.
- INVESTGAS SA and Operator Systemu Magazynowania Sp. z o.o. − the management and supervisory processes in the Trade and Storage segment were centralised in OSM Sp. z o.o., which should improve long-term operational efficiency in this area.
- PGNiG SA and PGNiG Energia SA, whose operations consisted mainly in electricity trading.
- August
On August 14th 2013, PGNiG and LOTOS Petrobaltic SA signed an agreement for joint operation within the Kamień Pomorski licence area. The objective behind the partnership was to intensify exploration projects in Poland, which is expected to result in increased production of crude oil and natural gas. The Kamień Pomorski licence area situated in the Province of Szczecin is one of the most promising ones in this region. The planned joint exploration projects will allow the partners to evaluate the reserve volumes and make decisions on whether to proceed with production.
- September
On September 11th 2013, the amended Polish Energy Law, called the ‘Mini Three Pack’, came into force, introducing regulations of fundamental importance, which provide for the development of the competitive gas market in Poland, and in particular the exchange sale obligation, i.e. the requirement that a defined percentage of gas volumes is to be sold through the power exchange. Based on the new regulations, the following quantities of gas are required to be sold through the exchange: until the end of 2013 − 30%, in 2014 − 40%, and in 2015 and beyond − 55% of the gas volume delivered to the transmission system.
- October
On October 3rd 2013, PGNiG and PGE Górnictwo i Energetyka Konwencjonalna SA signed an agreement for the supply of nitrogen-rich gas from local wells to the new CCGT unit at the Gorzów CHP plant. The value of the agreement is estimated at PLN 3 bn.
On October 7th 2013, PGNiG introduced a new pricing policy for all natural gas instruments traded on the Polish Power Exchange, both on the futures market and the day-ahead market. The aim of the changes was to offer natural gas to other market participants at prices level with those on other deregulated wholesale, exchange and OTC markets closest to the Polish market.
PGNiG signed an agreement with the Polish Power Exchange whereby the Group became the first direct member of the gas market. Since November 1st 2013, it has also had membership of the Warsaw Commodity Clearing House operated by Izba Rozliczeniowa Giełd Towarowych.
- November
PGNiG signed an agreement with the Polish Power Exchange to act as a market marker. The Company is now responsible for maintaining liquidity by regularly placing buy and sell orders on the Commodity Derivatives Market for gas in accordance with terms and conditions defined by the Polish Power Exchange.
On November 4th 2013, PGNiG executed an annex to the agreement for the sale of crude oil to TOTSA TOTAL OIL TRADING SA. The annex was signed for an indefinite term and the value of the agreement following its execution, i.e. in the period November 2013 to December 2015, was estimated at PLN 1.4 bn. The supplies will be transported from the Lubiatów and Dębno facilities via pipeline by Przedsiębiorstwo Eksploatacji Rurociągów Naftowych Przyjaźń SA. The execution of the annex allowed the Company to include the oil from the Lubiatów facility in the supplies to TOTSA TOTAL and increase the flexibility of the parties’ cooperation.
On November 4th 2013, PGNiG executed an agreement to sell crude oil to BP Europe SE. The agreement was made for the period from November 13th 2013 to the end of 2014, and was valued at approximately PLN 420 m. The supplies will be transported from the Lubiatów facility via pipeline by Przedsiębiorstwo Eksploatacji Rurociągów Naftowych Przyjaźń SA.
- December
PGNiG and Chevron Polska Energy Resources signed a memorandum on cooperation in shale gas exploration projects in south-eastern Poland.
The President of the Energy Regulatory Office approved a 1.5% increase in the gas fuel tariffs for household and industrial customers. The new tariffs have been in operation since January 1st 2014, and will remain in effect until July 31st 2014.
On December 20th 2013, PGNiG and Grupa LOTOS signed an agreement whereby PGNiG will supply Grupa LOTOS with crude oil in the years 2015–2019. The agreement was valued at approximately PLN 3.2 bn.
On December 30th 2013, the Supervisory Board of PGNiG appointed the new Management Board, composed of Mariusz Zawisza, Jerzy Kurella, Jarosław Bauc, Zbigniew Skrzypkiewicz, and Andrzej Parafianowicz, for a joint three-year term of office.
On December 31st 2013, the framework agreement on joint exploration for and production of shale gas between PGNiG, KGHM and PGE, Enea and Tauron energy companies expired.