Development prospects

In 2021, PGNiG plans to produce in Poland 3.8 bcm of natural gas (measured as high-methane gas equivalent), and 0.667m tonnes of crude oil and condensate.

Work planned for 2021 in the Sanok Production Branch includes:

• development and tie-in of the Brzyska Wola 2 and Dąbrowica Duża 3,6 – Żołynia wells;
• development of the following wells: Sędziszów (38K, 39K) OZG Sędziszów – KGZ Czarna Sędziszowska, Kramarzówka 1(K, 2H, 3H) – KGZ Tuligłowy, Korzeniówek 1 – KGZ Pilzno, Przemyśl (287K, 289K, 290 – KGZ Przemyśl Zachód, Przemyśl (303K, 304K) – KGZ Przemyśl Wschód, Rogoźnica (3K,4K,5K) – KGZ Zalesie, Nowe Sioło -1 i Mielniki-1 – KGZ Lubaczów, Przemyśl (299K, 308K) – KGZ Hurko, Przemyśl (291K, 292K, 316K, 317K, 318K) – Przemyśl Zachód;
• tie-in of the following wells: Jastrzębiec 2,3 – KGZ Tarnogród, Wielgoszówka 1K – KGZ Szczepanów, Draganowa 4K, OZG Draganowa – KRNiGZ Bóbrka – Równe;
• installation of an additional gas compressor at OZG Palikówka – KGZ Krasne.

The activities planned by the Zielona Góra Branch include:

• expansion of KRNiGZ Lubiatów to increase production output from the Międzychód field;
• expansion of KRNiGZ Dębno – development of the Różańsko field;
• development of the following fields: Kamień Mały, Babimost, Zbąszyń, Rokietnica (including construction of gas transmission pipeline from Grodzisk Wlkopolski to Kościan), Gryżyna, Czeszów;
• development of the following wells: Wielichowo-8, Koźminiec-1, Grotów (4K, 10 and 12K), Sieraków-2H, Chwalęcin-1K, Borowo-5, Granówko-1, Szczepowice-1, Turkowo-2, Brońsko-30, Paproć-66H;
• construction of a cogeneration source for KRNiGZ Dębno;
• upgrade of KRNiGZ Zielin;
• construction of a natural gas compressor station at OC KGZ Kościan-Brońsko.

PGNiG’s production branches will also engage in other investment projects, focusing mainly on maintaining or ramping up hydrocarbon production. Such projects include, for instance, work related to the installation of gas compressors or upgrade of flowline systems or gas pipelines.

On the Norwegian Continental Shelf, PGNiG UN will continue, as a partner, to produce hydrocarbons from the Skarv, Ærfugl, Morvin, Vilje, Vale and Gina Krog, Skogul, Kvitebjorn and Valemon fields and will develop the Ærfugl Nord and Duva fields. Development of the Tommeliten Alpha, Shrek, Alve Nord and King Lear fields is at the concept phase. PGNiG UN also works towards ensuring stable, predictable and long-term gas supplies to Poland. These include both support for the construction of infrastructure to physically bring Norwegian gas to Poland and potential acquisitions of production and/or pre-production assets on the Norwegian Continental Shelf.

In 2021, the company plans to increase gas production/exports by starting production at the Ærfugl (phase 2) and Duva fields, as well as expanding exploration activities at licences PL939 (drilling of exploration wells) and PL1009 and PL1064 (preparing for drillings scheduled for 2022).

Appraisal and production work is scheduled for 2021 to complete reservoir testing and tie-in the Rehman-7 development well, to drill the Rehman-8 development well, and to start drilling the Rizq-4 development well. In parallel with the drilling campaign, the PGNiG Pakistan Branch will work on expanding the capacity of the production infrastructure and tying. As part of continued exploration work, the Pakistan Branch also intends to complete interpretation of 3D seismics from the W1 prospect and 2D seismics from the W2 prospect. Based on the results of this interpretation, preparatory work will be carried out for future exploration wells.

Seismic surveys are scheduled to commence on the Musakhel licence in 2021 to decide whether to proceed to the next exploration phase.

In 2021, the Group intends to acquire shares in ERU (Energy Resources of Ukraine) and commence operations in the country. There are also plans to start cooperation with Ukrgazgazania in Western Ukraine.

Given the potential decline in demand for hydrocarbon exploration in Poland and Europe due to the green transition process, Geofizyka Torun will continue market diversification efforts. The company will also offer new technologies and its own innovative solutions to acquire, process and interpret geophysical data. The company intends to maximise the use of its competencies and existing technology solutions for the decarbonisation of the energy sector and to expand its portfolio of services by targeting areas such as geothermal energy, carbon capture, storage and utilisation, and wind energy. It will also work towards strengthening its position in the market for onshore and offshore geological, drilling and geotechnical services.

EXALO sees potential for further growth in geothermal drilling and drilling for underground gas storage. It is planned to strengthen the company’s position in the geothermal market, to continue building brand recognition as a contractor of this type of works, and to win new drilling contracts through increased competitiveness. Furthermore, in order to meet customers’ expectations, EXALO has begun to participate in tenders for the provision of „turnkey” drilling services (comprehensive drilling of a well, from preparation of access roads and the drilling site, supply of necessary utilities and development of the well) in markets where equipment and operational facilities are available.