PLN 1.9bn has been allocated to exploration for and production of hydrocarbons from domestic and foreign assets, of which the largest part (PLN 0.9bn) will be spent on the Group's exploration programme, as part of which 33 wells, including 10 shale wells, will be drilled in Poland. Some PLN 0.7bn has been budgeted for projects to extend and modernise oil and gas extraction facilities, mainly production drilling. Around 0.4bn will be invested by PGNiG SA subsidiaries, including Exalo Drilling and the foreign exploration subsidiaries.

Approximately PLN 1.2bn will be invested in expanding and upgrading the Group's gas network, with more than half of that amount (around PLN 650m) earmarked for development projects, such as new network connections.

Also, the Group will spend PLN 0.7bn to expand its underground gas storage capacities, with a strong focus on the salt cavern facilities in Mogilno and Kosakowo. The total underground gas storage capacity is expected to grow by 200 million cubic metres by the end of 2014.

Another PLN 0.7bn will be invested in the Generation business segment, with the capex budget for heat and power generation projects 170% larger than in 2013.

It is further announced that PGNiG estimates the Group's 2014 revenue to reach some PLN 32.7bn, with EBITDA projected at close to PLN 5.9bn.

Domestic gas sales volumes are expected to total around 14.4 billion cubic metres. Crude oil and condensate production from local and foreign assets is forecast at around 1.18 million tonnes, and gas production - at around 4.5 billion cubic metres.

Dorota Gajewska

Press Officer