PGNiG, Chevron reach Poland shale gas exploration agreement

Polish state-owned PGNiG has entered into a collaboration agreement with Chevron Polska Energy Resources for the first stage of shale gas exploration in four licenses in southeastern Poland.

The agreement, involving Chevron-owned licenses Zwierzyniec and Grabowiec and PGNiG-owned licenses Tomaszow Lubelski and Wiszniow-Tarnoszyn, will enable the companies to commence with the drilling of an exploration well.

Chevron in 2011 spudded its first exploration well in Poland to assess the shale gas potential of Grabowiec (OGJ Online, Nov. 2, 2011).

A technical committee jointly appointed by the companies will determine the scope and schedule of exploration work. The companies will exchange geological data and experience gathered thus far in their exploration efforts, PGNiG said.

The companies will concurrently work on preparation of the second collaboration agreement, execution of which will be subject to positive evaluation of the first stage exploration program’s results by the technical committee. A second stage entails further exploration work in relevant license areas.

PGNiG said the collaboration will enable the companies to reduce costs, share risks, and increase the pace of the exploration work.

The PGNiG-operated Markowola-1 exploration well near Kozienice in Lublin Province was the site of Poland’s first shale hydraulic fracturing operation in 2010 (OGJ Online, Aug. 13, 2010).

PGNiG since 2012 has worked jointly with four companies on shale gas exploration on the Wejherowo license in northern Poland (OGJ Online, July 5, 2012). ExxonMobil Corp. that year decided against proceeding with exploration of shale gas in Poland because two early wells had not demonstrated sustained commercial flows (OGJ, July 2, 2012, p. 44).

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