Another shale gas firm exits

The company said it plans to reduce its exposure to exploration assets and will give up four licences, in Czersk, Budzów, Iława and Praszka. It also plans to sell its stake in the Bieszczady area (eight licence blocks) to state-owned Polish oil refiner, PKN Orlen.

“The company remains committed to its remaining acreage in Poland, which includes the Baltic Basin shale licenses and the recently announced gas discovery at the Rawicz field,” group chief executive Oisin Fanning said.

Poland’s shale gas project is suffering as oil prices plummet and multinationals exit.

The main reason for the exit from shale gas concessions of the larger multi-national firms is the situation on the fuel market, above all the huge falls in prices of oil and gas.

In June, ConocoPhillips – the last remaining US firm in Polish shale gas - announced its departure from three concessions in Poland. Earlier the same decision had been by ExxonMobil, Marathon Oil and Chevron, Talisman Energy, Total and Italy’s ENI.

ConocoPhillips said it had stopped its shale gas exploration in Poland due to unsatisfactory results. Its subsidiary Lane Energy Poland had invested around USD 220 million in Poland since 2009, drilling seven wells over its three Western Baltic concessions.

Commercial volumes of natural gas were not encountered, the company said.

Shale gas exploration is now in the hands mainly of domestic concerns, PGNiG, Lotos Petrobaltic and PKN Orlen. In total there are 11 entities belonging to 10 capital groups looking at 40 exploration concessions and another 13 being reviewed for exploration. (jh)