PKN Orlen to intensify oil and gas production

PKN Orlen will intensify oil and gas production in Poland, PKN Orlen’s executive director for capital investments Robert Śleszyński told Polish Press Agency (PAP). The company will invest PLN 6.4 billion in this segment in Poland and Norway this year, he said on Friday.

PKN Orlen will present the company’s new strategy next Tuesday, company officials announced on Friday.

In an interview with PAP, PKN Orlen’s executive director for capital investments Robert Śleszyński confirmed that the concern would intensify oil and gas production in Poland. PKN Orlen acquired Grupa Lotos and PGNiG in 2022. Both companies have their own hydrocarbon exploration and production segments in Poland as well.

– We will intensify production in Poland as much as the geological conditions allow us. Extraction in Poland is not cheap. Extraction in Norway is cheaper. This is primarily due to the rock masses. Mining here (in Poland – PAP) is more difficult and more expensive,” Śleszyński noted.

He notes that there are also no significant hydrocarbon deposits in Poland.

PKN Orlen said on Friday that as a result of the acquisition of the PGNiG Group, oil and gas reserves and production levels had increased significantly, mainly in Poland and Norway. “At the end of the year, total oil and gas reserves amounted to 1.3 billion BOE”. The company also said it would spend a total of PLN 36.2bn on investments in 2023, of which PLN 6.4bn would be spent on hydrocarbon production in Poland and Norway.

Next Tuesday, PKN Orlen also said it would present an updated strategy in connection with its 2022 merger with Lotos Group and PGNiG. The previous strategy, announced in 2020, envisaged investments worth PLN 140 billion by 2030.

Throughout 2022. Orlen Group achieved revenues of PLN 278.5 billion, LIFO EBITDA of PLN 38.7 billion and a net profit of PLN 21.5 billion. The results have been cleaned up by a one-off gain on the bargain acquisition of LOTOS Group and PGNiG.

Source: PortalMorski.pl