Exploration and Production
Access to own reserves is the key to success. For this reason, PGNiG is developing its exploration and production business in Poland and abroad. The updated strategy has set the following strategic objectives:
- To develop the E&P business in Poland;
- To develop the international E&P business, focusing on key regions;
- To enhance competences and optimise activities in the exploration and production business.
Actions taken to pursue these objectives include:
- Increasing the domestic annual production of natural gas and crude oil to approximately 4.5bn m3 and 1.0m tonnes respectively;
- Maintaining the leading position among licence holders for unconventional gas exploration in Poland;
- Maintaining a reserve-replacement ratio of at least 1.1.
Our achievements to-date
The majority of domestic E&P tasks performed in 2011 focused on the exploration for and development of new fields.
As part of the exploration work and surveys conducted in 2011, the PGNiG Group drilled almost 53 kilometres of wells, acquired 1,500 kilometres of 2D seismic data and over 800 km2 of 3D seismic surveys in its licence areas in Poland and abroad.
The PGNiG Group seeks to become the leader in exploration for unconventional hydrocarbon resources in Poland, including shale gas and tight gas. Tests conducted in 2011 (in new exploration areas where there had so far been little appraisal) have confirmed the presence of gas in the Piaski-3 well (tight gas) in Western Pomerania, and Lubocino-1 (shale gas) in Eastern Pomerania. Furthermore, drillings of deep boreholes were carried out in the Carpathian Mountains and Carpathian Foothills: the Kramarzówka-1 borehole was completed, and drilling of the Dukla-1 borehole started.
Key oil and gas field development projects executed in 2011 included: the LMG project (Lubiatów-Międzychód-Grotów), in which the Company invested nearly PLN 436m in 2011, and the Grodzisk project completed in 2011, involving the development of fields and hook-up of wells, upgrade of the Paproć-Cicha Góra gas production facility and construction of a denitriding plant in Grodzisk Wielkopolski (total expenditure incurred on the project was PLN 458m).
The development of the Skarv field on the Norwegian Continental Shelf is currently the largest and most advanced project among the Company's international exploration and production ventures. Production from the Skarv field will be launched in 2012.