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Licences in Poland

As at December 31st 2017, PGNiG held 48 licences for exploration and appraisal of crude oil and natural gas deposits, vs 53 licences as at January 1st 2017. In 2017, 33 proceedings to extend, change or convert licences were closed (with a total of 21 concessions converted). 40 proceedings to approve additional works in geological projects were also completed. As at December 31st 2017, proceedings to convert 4 licences and extend 2 licences were still pending at the Ministry of the Environment. 17 additions to geological projects also await final approval.

As at December 31st 2017, PGNiG held a total of 213 production licences in Poland. In 2017, no new licences were granted to PGNiG, 26 licences were changed and 12 licences expired.

Work performed

Throughout 2017, PGNiG was involved in crude oil and natural gas exploration and appraisal projects in the Carpathian Mountains, Carpathian Foothills, Sudetian Monocline, and Polish Lowlands, both on its own and jointly with partners. Drilling work in areas covered by licences awarded to PGNiG was performed on 33 boreholes, including 12 exploration wells, 10 appraisal wells and 11 production wells. In 30 of the wells the target depth was reached, including in 11 exploration wells, 10 appraisal wells, and 9 production wells.

As at the end of December 2017, formation test results were obtained from 22 boreholes (12 exploration wells and 10 appraisal Regasification Services, as well as on amendments to that tariff which entered into force on January 1st 2016 and July 1st 2016, respectively. In 2017, there was no change in the level of tariff rates relative to 2016.

Volume of gas transmitted via the distribution system (mcm)

Starting from January 1st 2017, a new three-tier organisational structure was introduced, comprising the Head Office and 17 Gas Distribution Branches. Ultimately, there will be 172 local gas utilities and 59 service points operating within the Branches, making up a total 231 organizational units of PSG.

The mission of PSG as the distribution system operator is to provide gas fuel distribution services to all gas fuel consumers and traders (while ensuring that all of them receive equal treatment) on the basis of distribution agreements. In 2017, PSG executed 13 distribution agreements with Distribution Service Ordering Parties and 2 Interoperator Distribution Agreements. Moreover, throughout the year PSG carried out approximately 260 thousand Single Distribution Orders of all types.

In 2017, as part of customer connection services, PSG issued more than 150.7 thousand grid connection terms and conditions (up by about 18% on 2016) and executed more than 69.6 thousand grid connection agreements with customers providing for the construction of more than 77.8 thousand new gas service lines (up by about 21% on 2016). 486 letters of intent concerning the construction of gas networks in further municipalities and communes in Poland were signed. Throughout 2017, 54,922 gas service lines were built with a total length of 544.6 km.

Length of network, including service lines (thou. km), and volume of distributed gas (bcm)