PKN ORLEN at „Kazakstan Investment Summit
Representatives of the Executive Board of PKN ORLEN participate in the international trade summit taking place on 8-9th June, in Alma Ata.
Participants of the summit include investors and economic leaders from all over the world, with particular interest in the Kazak oil sector. During two days of meetings, the information will be presented about current trends and possibilities of cooperation of international business groups in investments deployed in Kazakstan. The Conference is held in Alma Ata, the country’s largest city.
On the first day of the summit the CEO of PKN ORLEN, Igor Chalupec, attended the discussion with participation of Bakhytkoj Izmukhambetov, the Minister for Energy and Natural Resources of the Kazak government. The meeting was devoted to specifics and current situation on the oil market in Kazakstan and presentation of investment opportunities in this region
The interest of PKN ORLEN in the topics of the conference held in Alma Ata ensues from the Company’s strategy, where one of the lines of development is upstream. In this view in early May 2006 the Group registered the company ORLEN Upstream sp. z o.o., with the task to expand the Group’s upstream segment.
In the first stage – until 2009 - ORLEN intends to gradually create organizational structures and build competencies on the basis of individual transactions in such countries as Kazakstan, Iraq, Mahreb countries or Russia.
For the first two years planning of capital investments will focus on assets of smaller risk, with preference for projects deployed in the frames of joint venture. At this stage ORLEN intends to purchase minority shares, without assuming the role of an operator, taking advantage of the competencies of operators.
In the second phase of the program until 2015, in the case of short-term projects (5 years duration), the company is planning to assume the role of an operator, but still basing on outsoursing in technical issues. In projects with a longer time perspective - 10 years, the Group will to a larger extent become involved in direct exploration, developing technical skills and building local organizational structures.
Assumptions for upstream envisage gradual increase in the amount of raw material from 0.4 mio tones in 2007 up to 4.3m tones in 2015. The capital investment required for the program implementation are estimated at USD 130m per annum in the years 2007-2009, and in further 5 years - USD 438m.
