Search results:

en
No notes
Your basket is empty
Send to print
Delete
A A A
Tools

Increasing proven hydrocarbon reserves

One of the segment’s key objectives is to increase its proven hydrocarbon reserves by 35% by taking appropriate measures in Poland and abroad. The PGNiG Group’s ambition is to reverse the negative trend observed in 2010-2015, when the Group’s total hydrocarbon base decreased by around 2% on average per year.

Directions

In the light of little prospects of proving unconventional reserves and the limited capacity for growth in discoveries of new hydrocarbon reserves in Poland, the Group is looking for ways to increase its hydrocarbon reserves and step up production abroad. The Group is also committed to carrying out production projects which will yield equity gas on the Norwegian Continental Shelf, with physical transport of gas to Poland.

Hydrocarbon exploration in Poland is planned to be intensified in 2017–2022, to maintain the high rate of new discoveries. The 2016 breakthrough in exploration efficiency led to a surge in newly discovered hydrocarbon reserves (increase of approximately 35 mboe in 2016 vs approximately 16 mboe in 2015). In 2017–2022, the gross annual growth in Polish hydrocarbon reserves (without accounting for production) is expected to continue at a rate close to the 2016 levels, ranging from approximately 27 to 34 mboe annually.

To this end, the following steps will be taken:

  • review of the granted licences to evaluate whether exploration and/or production can be continued efficiently, and sale of unpromising licences,
  • review of exploration plans in Poland to maximise the probability of new discoveries and prove new hydrocarbon reserves,
  • review of field development plans to accelerate, among other things, completion of investment projects,
  • new approach to preparing field development plans and carrying out preparatory works (e.g. obtaining preliminary/conditional consents from land owners) prior to exploration drilling,
  • standardization of technical requirements for the construction of onshore infrastructure and their adaptation to actual technological and operational needs.

Increasing annual hydrocarbon production volume

Another of the segment’s strategic objectives is to increase the volume of annual hydrocarbon production from approximately 39m boe in 2017 to close to 55m boe in 2022 (+15.9m boe, CAGR 6%) by keeping up the annual output in Poland at 30–33m boe and considerably stepping up production abroad, i.e. in Pakistan and Norway, to 22m boe annually.

To achieve that, the following measures will be taken:

  • in Poland: increasing output from producing fields,
  • abroad:
    • participation in licence award proceedings in priority regions/countries,
    • execution of M&A projects in priority regions/countries
    • implementation of an accelerated field development programme in the licence area

Increasing profitability of exploration and production operations

It is the segment’s strategically-motivated ambition to considerably reduce unit exploration costs in Poland. Exploration efforts are to be focused on projects offering the highest potential for commercial success. In addition, the average time for appraisal and development of deposits is assumed to be shortened.

Delivery of the PGNiG Group’s Exploration and Production Strategy will lead to an increase in EBITDA until 2022 as a result of taking the aforementioned strategic measures, optimisation of operating costs of service companies and expansion of field services offered to external companies, including in new markets, optimisation of the portfolio of foreign upstream assets, stepping up exploration projects abroad (Norway and Pakistan), and enhancing business processes with innovative technologies (e.g. in management of hydrocarbon production operations).