PGNiG and Orlen concluded an agreement on the joint completion of an exploratory and extraction project, located in northwest Poland.

The project is the continuation of initial exploration work completed by PGNiG on the Niz Polski. The proposed area for cooperation is located in the most promising region for hydrocarbon exploration in Poland. The initially recognised, collection of crude oil in the area of the Sieraków deposit is located near the largest discoveries of crude oil deposits made in recent years by PGNiG in Poland. The estimated reserves are approximately 130 million barrels, of which the estimated extractable reserves are 26 million barrels, while the production planned at this stage of exploration is approximately 15 million barrels.

In the name of Orlen, the project will be completed by its subsidiary Orlen Upstream Sp. z o.o. created in order to carry out Orlen's strategy in the area of exploration and extraction.

The planned involvement of PGNiG SA in the enterprise is 51%, and PKN Orlen SA - 49 %.

For covering 51 % of the expenses needed for the completion of the project PGNiG SA is obtaining a proportional right to future revenues. The remaining 49 % remains in the possession of PKN Orlen.

The total estimated costs for the completion of the enterprise will not exceed PLN 400 million. In the first years of the project execution they will not exceed PLN 50m. The major part of the amount will be spent in the following years.

PGNiG SA is the operator, whose role is the ongoing management of the project, completed based on jointly agreed upon and approved schedules and budgets.

Tags: ORLEN Projekt SA, PGNiG