The initiative is part of PGNiG's new policy of openness to opportunities that might come from working with other companies interested in Polish shale gas deposits.

Potentially, the relationship would reduce the parties' costs, and by virtue of an economy of scale, increase the pace of their exploration work. As a result, the assessment of potential shale gas resources in Poland could be accomplished much faster.

It would also provide for technical collaboration in evaluating the prospectivity of individual licences.

"In establishing this relationship, PGNiG would win a solid and experienced business partner for a challenging exploration effort, and we would be able to draw on Chevron's global experience in shale gas exploration and production. I am convinced that a policy of openness, paving the way for partnership and cooperation between Polish and foreign companies, can be of benefit to everyone involved. Both parties could profit from sharing the exploration risk and from reduced costs, including the potential cost of developing the reserves," said Jerzy Kurella, acting President of the PGNiG SA Management Board.

"We look forward to starting our cooperation with the  Polish Oil and Gas Company. Chevron believes in partnership, which is a core value for us, wherever we operate. We will continue to focus on safe and responsible operations during our joint exploration efforts," said John Claussen, Country Manager, Chevron Polska Energy Resources.

Successful exploration could result in the establishment of a joint company in which each holds a 50% interest. The company would obtain four licences in south-eastern Poland: Tomaszów Lubelski and Wiszniów-Tarnoszyn from PGNiG SA, and Zwierzyniec and Grabowiec from Chevron. The newly-established company would also become the operator of those licences, according to a work programme agreed between the partners.

The details of the joint project, including the exploration time-line, remain to be determined. Binding agreements are expected to be signed as soon as 2014.

Press Team of PGNiG SA