BRITISH GAS OBTAINS POLISH E&P RIGHTS

British Gas plc has received exploration and production rights from Poland's Ministry of Environmental Protection, Natural Resources, and Forestry covering nine blocks 100 km west of Warsaw. The adjacent blocks, offered in Poland's first onshore licensing round, cover a total 9,000 sq km. BG holds a 100% interest during exploration. The ministry can take an equity interest during the development phase. Any government stake is expected to be less than 50%, BG said.

Dec. 20, 1993

2 min read

British Gas plc has received exploration and production rights from Poland's Ministry of Environmental Protection, Natural Resources, and Forestry covering nine blocks 100 km west of Warsaw.

The adjacent blocks, offered in Poland's first onshore licensing round, cover a total 9,000 sq km.

BG holds a 100% interest during exploration. The ministry can take an equity interest during the development phase. Any government stake is expected to be less than 50%, BG said.

The blocks cover a gas prone area believed to be geologically similar to the southern North Sea. Seismic surveys are to start next year.

Initial work commitment is for acquisition of 300 line km of seismic data and drilling of one wildcat the first 3 years. The exploration phase can be extended for 3 years.

OTHER EXPLORATION DEALS

Last year Amoco Poland Ltd. became the first foreign company to win exploration rights in Poland, with the award of two blocks covering 2.7 million acres. Amoco is committed to a $20 million program of seismic surveying and drilling on its first round blocks (OGJ, Oct. 12, 1992, p. 36).

Shell International Petroleum Co. Ltd. is currently discussing legal and fiscal details with the Polish government for licensing of remaining first, round acreage.

Poland recently opened a second exploration licensing round covering 27 onshore blocks near Lublin and the Carpathian Mountains and operation of two gas field development projects. Bids are due Apr. 12, 1994.