ORLEN takes a cautious approach to assessing the potential of the Wolin project

ORLEN takes a cautious approach to assessing the potential of the Wolin project presented by Central European Petroleum, among other things due to the general nature of the data concerning the announced discovery, according to a statement from the ORLEN press office.

ORLEN is following with interest publications on the work carried out by various operators on concessions in Poland, including the Wolin concession, understanding the importance of increasing the domestic hydrocarbon resource base for Poland’s energy security. This is consistent with the ORLEN 2035 strategy, which aims to increase natural gas production to 12 billion cubic metres, including 4 billion cubic metres from deposits in Poland, ORLEN’s press office wrote.

Currently, the ORLEN group has a total of over 200 concessions where it explores for and extracts hydrocarbons.

‘The general nature of the data on the announced discovery reported by the media and the lack of details on the drilling and the preceding seismic survey do not allow ORLEN to change its previously developed assessment of the project’s potential, based on geological, economic and environmental considerations related to the project,’ the Płock-based company pointed out.

According to unofficial information from PAP Biznes, ORLEN representatives monitored the results of exploration work completed on the Wolin concession by Central European Petroleum in February this year. They also attempted to meet with CEP to discuss the details of the discovery, but no such meeting took place.

On Monday, Central European Petroleum announced a major oil discovery at the Wolin East 1 (WE1) well, drilled in the Baltic Sea, about 6 km from Świnoujście.

CEP CEO Rolf Skaar announced in an interview with PAP Biznes that Central European Petroleum is beginning to search for Polish and international partners to extract oil and gas from the Wolin concession.

The Wolin East deposit is estimated to contain 22 million tonnes of recoverable hydrocarbons in the form of oil and condensate and 5 billion cubic metres of commercial-quality gas. The total resources of the Wolin concession include over 33 million tonnes of recoverable crude oil and condensate and 27 billion cubic metres of commercial-quality gas.

According to CEP President Rolf Skaar, the Wolin East oil and natural gas deposit is the largest conventional hydrocarbon deposit discovered to date in Poland and one of the largest conventional oil deposits discovered in Europe in the last decade.

Deputy Head of the Climate Ministry and Chief Geologist of Poland Krzysztof Galos, referring to Monday’s announcement by CEP, said that the Ministry of Climate and Environment will only be able to confirm the discovery of the largest hydrocarbon deposit in Poland near Świnoujście after receiving geological documentation. He added that the ministry will only be able to comment on the discovery in detail after the CEP has submitted the geological documentation and it has been approved by the Chief Geologist of Poland. He expressed his hope that this will happen within the next few months.

Poland’s oil demand is approximately 700,000 barrels per day. Domestic production provides only about 16,000-18,000 barrels per day, with 95% of oil being imported.

Rolf Skaar announced that once production begins, daily oil production in Poland will at least double, which will have a significant impact on domestic oil production and will be very beneficial for Poland’s energy security.

Once production begins, domestic gas production will also increase by about 20%. CEP recently confirmed estimates of 16.5 billion cubic metres of gas on its concession.

At the end of February, Central European Petroleum completed drilling its first well, Wolin East 1 (WE1), on the Wolin concession. At the time, the company assessed that the preliminary results obtained during drilling looked encouraging.

The Wolin concession covers an area of 593 square kilometres and was issued by the Minister of Climate and Environment. CEP is exploring for hydrocarbons in the main dolomite (Ca2) and Rotliegend deposits.

As part of the WE1 project, CEP carried out drilling, core sampling, geophysical profiling and reservoir testing in the Ca2 main dolomite reservoir. Data collected prior to drilling suggested that the Ca2 main dolomite deposit may contain up to 16.5 billion cubic metres of recoverable gas and 10.3 million cubic metres of recoverable liquids.

Central European Petroleum Ltd is a Canadian company based in Calgary, engaged in the exploration and production of hydrocarbons, majority-owned by Norwegian investors. Its subsidiary, CEP Central European Petroleum, holds the Wolin licence in north-western Poland and acts as the operator of this licence.

Source: PortalMorski.pl