Investments in 2020

In 2020, PGNiG’s capital expenditure in the Exploration and Production segment was approximately PLN 884m. The key exploration / appraisal / research projects in 2020 included:

• drilling of Nowe Sady 1 and Kramarzówka 3 test wells;
• drilling of Grochowce 1K and Kramarzówka 3H appraisal wells;
• drilling of Paproć-66H and Przemyśl-318K production wells.

PGNiG’s capital expenditure on exploration activities in Poland was approximately PLN 587m. The key projects in 2020 included:

• installation of additional compressor at the Żołynia facility;
• installation of booster compressor at KGZ Tarnów II;
• development of the Gilowice 3 pad;
• development of the Przemyśl 288K, 302K, 305K – Żurawica wells;
• installation of gas compressor at the Tarchał field;
• connection of the Mirocin 66K, 67K, 68K, 69K wells (Mirocin facility) – the project will be completed in 2021.

PGNiG’s total expenditure on its upstream operations abroad was PLN 133m, of which capital expenditure incurred in Pakistan in 2020 was PLN 75m and in the United Arab Emirates – PLN 58m.

2020 was a record year for PGNiG UN in terms of its capital expenditure, which was approximately NOK 3.37bn (PLN 1.57bn). Net of acquisitions, capital expenditure in Norway in 2020 was approximately NOK 1.86bn (PLN 0.82bn). In 2020, the company was taking steps to maintain production from its current fields while maintaining a strong operating performance, by investing in:

• additional interests in licences PL636 and PL636B, both containing the Duva field;
• interests in the PL29B licence and in the PL127C licence, which covers the Alve Nord discovery, as well as additional shares in the Gina Krog project;
• interests in the PL193, PL193B, PL193C and PL193D licence areas, including shares in the Kvitebjorn field and the Valemon field.