Interview: Poland's natural-gas PGNiG to start shale production after end-2016, Deputy CEO says

By bne IntelliNews April 3, 2014

WARSAW (IntelliNews) -- PGNiG, Poland’s listed natural-gas company, expects to begin production from its domestic shale-gas deposits after the end of 2016, Deputy Chief Executive Zbigniew Skrzypkiewicz told IntelliNews/CapitalIntel.

The company plans to spend PLN 1.9bn (EUR 456m) on exploration and extraction this year, drilling 33 test wells in Poland, of which 10 are shale wells, Skrzypkiewicz said. PGNiG has so far drilled 56 test wells on shale deposits.

The company hopes to start drilling horizontally in 2015, he said.

PGNiG expects to have a full picture of which areas and wells will prove the most productive at the end of 2016 and will then make decisions about further development of its shale deposits, the deputy CEO said.

In March, PGNiG signed an agreement to cooperate with Chevron Polska Energy Resources to jointly explore for shale gas in Poland. The companies will jointly search for gas at two Chevron and two PGNiG concessions in north-east Poland. The cooperation aims to lower costs, spread risk and accelerate exploration work.

by Aleksander Nowacki in Warsaw

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