Companies of the Segment

The companies operating within Exploration and Production segment

GEOFIZYKA Kraków Group

GEOFIZYKA Kraków Sp. z o.o. provides geophysical services related to seismic data acquisition (2D/3D vibroseis and dynamite data acquisition), seismic data processing and interpretation, well logging, special well interventions, interpretations, perforations and downhole seismic surveys.

    2014 2013 2012 2011 2010 2009
Sales revenue PLN m 209,5 152,5 169.3 247.3 224.3 289.7
Net (loss) profit PLN m -9,6 -9,5 -15.8 8.9 1.8 12.7
Equity PLN m 66,5 77,6 86.3 102.5 97.7 100.6
Total assets PLN m 194,6 218,3 231.7 236.5 221.1 218.1
Headcounts persons 948 766 1 182 1 604 1 517 1 361
as at the end of each year
back to the top

GEOFIZYKA Toruń sp. z o.o.

GEOFIZYKA Toruń Sp. z o.o. provides geophysical services in the area of seismic surveys, from planning and data acquisition to digital processing and comprehensive geophysical and geological interpretations. The company also provides well logging and well intervention services, including interpretation of results. In addition, the company offers a variety of near-surface geophysical services in the field of geology, hydrogeology and environmental protection, as well as design and delivery of deep anode groundbeds for cathodic protection.
 

    2014 2013 2012 2011 2010 2009
Sales revenue PLN m 266,4 339,2 348.5 371.1 302.0 268.3
Net (loss) profit PLN m 22,1 20,5 12.1 21.3 22.0 3.1
Equity PLN m 215,5 205,4 189.2 187.9 177.3 157.0
Total assets PLN m 281,1 279,9 264.2 253.5 235.0 212.4
Headcounts persons 1482 1732 1 576 1 881 1 630 1 106
as at the end of each year
back to the top

EXALO Drilling SA

In December 2012, PGNiG consolidated its exploration and service companies within the Group’s Exploration and Production segment. PGNiG Poszukiwania SA merged with PNiG Kraków SA, PNiG NAFTA SA, PNiG Jasło SA, PN Diament Sp. z o.o. and ZRG Krosno Sp. z o.o. The companies’ assets were transferred to PGNiG Poszukiwania SA, which was renamed Exalo Drilling SA on February 6th 2013.

The company is engaged in drilling exploration, appraisal, research, production and ventilation boreholes, as well as the performance of specialist well services both in Poland and abroad..

In 2014, Exalo Drilling provided exploration, appraisal and research well drilling services for hydrocarbon, copper and geothermal exploration. Drilling was conducted both for PGNiG Group, and third-party clients in Poland and abroad. On the domestic market, the company performed contracts regarding i.e.:

  • conventional gas deposits –for PGNiG S.A., FX Energy Poland Sp. z o.o. and others
  • unconventional gas desposits – for PGNiG S.A, Orlen Upstream Sp. z o.o., Chevron Polska Energy Resources Sp. z o.o., Wisent Oil &Gas Sp. z o.o. (shale gas exploration) and others
  • drilling for copper – for KGHM Polska Miedź S.A., Zielona Góra Copper Sp. z o.o. and Mozów Copper Sp. z o.o.
  • drilling a geothermal borehole – for PEC Geotermia Podhalańska S.A.

On foreign markets, drilling was conducted in exploration for conventional hydrocarbon deposits for third-party clients in Georgia, Egypt, Ukraine and Lithuania, and for the PGNiG Group in Libya and Egypt. Moreover, the company executed contracts for production well drilling operations, which were primarily performed abroad and for third-party clients – mainly in Africa (Uganda, Ethiopia, Egypt), Asia (Kazakhstan, Georgia, Pakistan), and Europe (Ukraine).

Exalo Drilling also performed specialist well services consisting of reservoir measurements, application of enhanced recovery techniques, mud, cementing and datawell services, major remedial treatments, workovers and well abandonment services. The PGNiG Group was the company’s main client for well services. In Poland, the main third-party client was PEC Geotermia Podhalańska SA, for which cementing services were performed. Services provided abroad included application of enhanced recovery techniques in Russia, as well as remedial treatments and well interventions in the Czech Republic.

    2014 2013
Sales revenue PLN m 1041 1107
Net (loss) profit PLN m 0,6 -11
Equity PLN m 549,9 531,9
Total assets PLN m 1289,4 1329,7
Headcounts persons 3646 3952
as at the end of each year
back to the top

PGNiG Upstream International AS

PGNiG Upstream International AS (formerly PGNiG Norway AS) was established for the purposes of a project on the Norwegian Continental Shelf, the aim of which is to provide access to new recoverable reserves of oil and gas outside Poland. The principal business objective of PGNiG Upstream International AS is the exploration for and production of crude oil and natural gas on the Norwegian Continental Shelf. PGNiG UI has been pre-qualified as an operator by Norwegian authorities.

PGNiG Upstream International AS holds interests in exploratory and production licences on the Norwegian Continental Shelf, in the Norwegian Sea and in the Barents Sea. Jointly with its partners, the company is developing the Skarv, Snadd, and Idun fields. PGNiG Upstream International AS holds a 12% interest in the licence. The other interest holders are British Petroleum (operator, 24%), Statoil (36%) and E.ON (28%). In the other licence areas, the company is engaged in exploration projects.

On December 31st 2012, the company and its partners launched production of crude oil and natural gas from the Skarv and Idun fields (Skarv project). Between January and October 2013, start-up works were conducted on the field, including well cleanout and testing, and individual wells were brought on-stream. The field is now operated through a total of 16 wells. Hydrocarbons are produced using a new floating production, storage and offloading vessel (FPSO), which is moored close to the field. 

The company has been selling the extracted hydrocarbons since January 2013. The oil is sold directly from the FPSO vessel to Shell International Trading and Shipping Company Ltd. and transported by the partner’s fleet of shuttle tankers. The produced gas is transmitted over the Gassled Area B System gas pipeline to the onshore terminal in Kårsto, and then redirected to Germany over the Gassled Area D System gas pipeline, where it is received by PGNiG Sales & Trading GmbH. In 2013, the company produced a total of 284 thousand tonnes of crude oil and other fractions (measured as tonnes of crude oil equivalent) and 340 mcm of natural gas. 

In 2014, PGNiG Upstream International AS acquired interests in four fields on the Norwegian Continental Shelf from Total E&P Norge AS. The interests cover six licences on the Morvin, Vilje, Vale and Gina Krog fields. As a result of the transaction, PGNiG Upstream International AS acquired:

  • a 24.243% interest in the PL36D licence (Vilje field); the remaining interests are held by Det norske oljeselskap ASA as the operator (46.904%) and Statoil Petroleum AS (28.853%),
  • a 24.243% interest in the PL36 and PL249 licences (Vale field); the remaining interests are held by Centrica plc as the operator (50%) and Lotos E&P Norge AS (25.757%),
  • a 6% interest in the PL136B and PL136C licences (Morvin field); the remaining interests are held by Statoil Petroleum AS as the operator (64%) and Eni Norge AS (30%),
  • a 29.63% interest in the PL029C licence (representing an 8% interest in the Gina Krog field); the remaining interests are held by Statoil Petroleum AS as the operator (58.7%), Total E&P Norge AS (30%) and Det norske oljeselskap ASA (3.3%).

An independent auditor’s report sets the 2P recoverable reserves of crude oil (72%) and natural gas (28%) attributable to the acquired interests at 33 mboe. Consequently, PGNiG Upstream International AS’ recoverable reserves in Norway grew by ca. 60%. According to operator data, production from the fields will continue for an average period of 14 years. The interests were acquired for NOK 1,950m, with January 1st 2014 as the agreed transaction date. A significant portion of the transaction price was paid with cash flows acquired by PGNiG Upstream International AS and generated in the period between the agreed acquisition date and the date of actual settlement of the transaction. Given the achieved sales targets of hydrocarbons produced from the acquired fields in 2014, reduced costs and capital expenditure, as well as favourable foreign exchange rates, the ultimate cash payment was approximately NOK 843m (approximately PLN 400m at the exchange rate as at December 30th 2014), which accounted for only 43% of the purchase price. The amount was financed with an intra-Group bridge loan provided by PGNiG S.A.

As part of another licensing round, concluded in 2014, PGNiG Upstream International AS was granted the PL756 operator licence in the Norwegian Sea. As the operator, the company acquired a 50% interest in the licence. The licence partners are Idemitsu Petroleum Norge AS and Rocksource Exploration Norway AS, each with a 25% interest. The PL756 licence – located in a well appraised area, close to a number of producing fields, including the large Aasgard field – is the second operator licence granted to PGNiG Upstream International AS on the Norwegian Continental Shelf.

As geological and geophysical analyses performed in the PL599, PL600 and PL648S licence areas revealed significant exploration risks the company and its partners renounced the PL599 and PL600 licence areas and relinquished the PL648S licence. As at December 31st 2014, PGNiG Upstream International AS held interests in 18 exploration and production licences on the Norwegian Continental Shelf, including two operator licences.

In 2014, the company continued work on the development of the Snadd field and preparation of the Skarv field for the second drilling stage (scheduled to commence in 2017), as well as its operations on other exploration licence areas. Among other things, it worked on evaluation of prospectivity of the PL646, PL707, PL711 and PL756 licences and was involved as a partner in drilling of an exploration borehole (ultimately classified as a dry hole and abandoned) in the PL558 licence area.

In January 2015, upon conclusion of another licensing round, PGNiG Upstream International AS was granted the PL799 operator licence in the Norwegian Sea. As the operator, the company acquired a 40% interest in the licence, while its partners – Statoil Petroleum AS, VNG Norge AS and Explora Petroleum AS – received a 20% interest each. The PL799 licence area is located in the vicinity of the Skarv and Snadd fields.

    2014 2013 2012 2011 2010 2009
Sales revenue PLN m 1266,3 1124,2 0 0 0 0
Net (loss) profit PLN m -38,4 -25 74 -131,6 -76,8 -32,4
Equity PLN m 255,7 306,1 370 291 314,2 382,4
Total assets PLN m 4169,8 4251,5 5019 4 661,40 3424,1 221,1
Headcounts persons 27 28 22 23 22 20
as at the end of each year

 

back to the top

POGC-Libya BV

In 2008, the PGNiG Finance B.V. company was transformed into Polish Oil and Gas Company-Libya B.V. The core business of Polish Oil and Gas Company-Libya B.V. consists in the exploration for and production of hydrocarbons in Libya. The company conducts exploration work in license area No. 113 located within the Murzuq petroleum basin, under an Exploration and Production Sharing Agreement of February 25th 2008 entered into with the Libyan government.

In 2013, the company completed preparations and began the first phase of the drilling works, which included drilling four exploratory wells. The first one resulted in exploring natural gas, which was acknowledge by National Oil Corporation, the Libyan partner. Drilling and testing of the second well were completed in December 2013. In the same year, the company finished preparations for the third well. However, seismic works concerning the second-phase acquisition of 3D data, scheduled for 2013, were postponed until later years.

Since January 2014, due to the tense political situation and increasing risk for the safety of employees, the company has not conducted exploration works in Libya.

    2014 2013 2012 2011 2010 2009
Sales revenue PLN m 0,0 0 0 0 0 0
Net (loss) profit PLN m -419.9 -8,7 -9 -20,7 -55,3 -157,8
Equity PLN m -2 352,6 315 47,6 54,8 39,6
Total assets PLN m 15,7 375,9 321 52,9 64,8 61,7
Headcounts persons 38 69 58 36 37 25
as at the end of each year