ORLEN Upstream, a subsidiary of PKN ORLEN, has entered into a joint operating agreement with Polskie Górnictwo Naftowe i Gazownictwo SA company (PGNiG). The companies plan to jointly conduct analytic and research works in eight concession blocks in Podkarpackie Voivodeship.
The aim of these operations is exploration, appraisal, and production of crude oil and natural gas in the Carpathians. As a result of the agreement, ORLEN Upstream aquired 49% of shares in eight concession blocks grouped under the joint name of Bieszczady Project. The agreement envisages completion of work schedule established by the partners.
The agreement stipulates joint exploration works in concession blocks 437, 438, 456, 457, and 458, and also partially on blocks 416, 417, and 436. They all cover an area of over 3,500 square kilometers and have been issued for 2.5 years to 5 years by the Ministry of the Environment. The geological target of exploration for hydrocarbons in this area covers the Carpathian flysch formation, from lower Cretaceous to Miocene, at up to 6,000 meters deep. A number of seismic and geophysical surveys, and one exploratory well (Niebieszczany-1), have been conducted in the area between 2008 and 2014. The joint operations of PGNiG and ORLEN Upstream are to continue exploration operations on the designated area.
ORLEN Upstream and PGNiG are already conducting joint works within the E&P “Sierakow” project, in the Polish Lowlands, in the Międzychód-Gorzów Wielkopolski concession, and in the Wronki concession. The aim of the Sierakow exploration and production project is development of jointly recognized structures of the main dolomite in the Szczecin Trough. PGNiG owns 51% shares in the project, while ORLEN Upstream has 49%. Currently, geological works are being conducted, aiming at identification of further locations for exploratory wells, together with preparations for hydraulic fracturing. This is yet another stage of the project works targeted by both partners at production of crude oil and natural gas in West Wielkopolska.