FinMin pledges not to levy tax on shale gas extracted in Poland until 2020

By bne IntelliNews May 23, 2013

The new law on hydrocarbons is due to enter force in 2015, but the tax on shale gas produced in Poland will not be levied until 2020, according to deputy PM and minister of finance Jacek Rostowski. He stressed that the government thus wants to attract investors to Poland.

So far, the ministry of environment has granted over 110 licenses for shale gas prospecting to, among others, Chevron, ConocoPhillips, Talisman Energy, PGNiG, Grupa Lotos and Orlen Upstream.

However, Talisman and Marathon Oil have withdrawn from their Polish projects earlier this month. Media reported that investors explained their exit by, among others, lack of clear-cut tax regime and plans for the sector.

In April of 2011, the U.S. Energy Information Administration (EIA) estimated that Poland's technically recoverable shale gas resources are 187tr cubic feet (or around 5.3tr cu.m.). In March of 2012, the State Geological Institute (PIG) estimated that Poland's shale gas deposits are at least around 345-768bn m3. PIG is due to present an update to its estimates in 2014.

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