ORLEN Upstream has entered into a Joint Operating Agreement with Polskie Górnictwo Naftowe i Gazownictwo S.A. company (PGNiG). The companies aim to jointly conduct analytic and research works in eight concession blocks in Podkarpackie Voivodeship.
The aim of these operations is exploration, appraisal and production of crude oil and natural gas in the Carpathians. As a result of the agreement, ORLEN Upstream aquired 49% of shares in 8 concession blocks grouped under the joint name 'Bieszczady' Project. The agreement envisages completion of work schedule established by the partners.
‘The Carpathian Foredeep is, historically speaking, one of the most prospective areas when it comes to concentration of hydrocarbons. For years we have been systematically documenting deposits in Bieszczady area. I believe that gaining a new partner who offers both co-financing and experience in acquisition and interpretation of geological data, will open for us new perspectives in this area', said Zbigniew Skrzypkiewicz, Vice-President for Exploration and Production, PGNiG S.A.
The agreement stipulates joint exploration works in concession blocks number 437, 438, 456, 457 and 458 and also partially on blocks number 416, 417 and 436. They all cover an area of over 3500 sq.km and have been issued for 2.5 to 5 years by the Ministry of the Environment. The geological target of exploration for hydrocarbons in this area covers the Carpathian flysch formation, from lower Cretaceous to Miocene, at up to 6,000 m. deep. A number of seismic and geophysical surveys, and one exploratory well (Niebieszczany-1) have been conducted in the area between 2008 and 2014. The joint operations of PGNiG and ORLEN Upstream are to continue exploration operations on the designated area.
‘We systematically review our E&P concepts and analyse possibilities for new profitable cooperation or acquisition, both in Poland and abroad’. - emphasized Wiesław Prugar, President of the Management Board, ORLEN Upstream. ‘We have been analysing the Subcarpathia region for quite some time. Back in 2014 we applied to the Ministry of the Environment to obtain new concession blocks in this region. The procedures are underway. Thanks to the cooperation with a partner we will be able to expand the exploration area, additionally gaining a broader context for the exploration works we aim to conduct in the Podkarpacie region in the following months . - W. Prugar added.
ORLEN Upstream and PGNiG are already conducting joint works within the E&P “Sierakow” project, in Polish Lowlands, in the Międzychód-Gorzów Wielkopolski concession and in Wronki concession. The aim of Sierakow exploration and production project is development of jointly recognised structures of the main dolomite in Szczecin Trough. PGNiG owns 51% shares in the project, while ORLEN Upstream has 49%. Currently, geological works are being conducted, aiming at identification of further locations for exploratory wells, together with preparations for hydraulic fracturing. This is yet another stage of the project works targeted by both partners at production of crude oil and natural gas in West Wielkopolska.