News
20.01.2014 PGNiG reviews financial exposure to Libya
The PGNiG Management Board has recognised an impairment loss on PGNiG's interest in POGC Libya BV, a subsidiary, and a provision for the outstanding licence obligations under the Murzuq project in Libya. The future of the project will be decided on by PGNiG after further geological and economic analyses are completed.
The impairment loss of PLN 420m, covering all shares in POGC Libia BV and additional contributions to its share capital, and the provision of PLN 137m were recognised as at December 31st 2013 (balance-sheet date) following an analysis of the project's effectiveness.
Its results were driven primarily by:
- another review of the forecast volume of hydrocarbon resources within the Libyan licence,
- assessment of future capital expenditure and operating costs related to further exploration work,
- re-scheduling of the project,
- geopolitical concerns in Libya and uncertainty as to whether the licence, which expires in September 2014, will be extended.
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Polish Oil and Gas Company Libya (POGC) Libya B.V. is a wholly-owned subsidiary of PGNiG, established to explore for natural gas and crude oil within the Murzuq petroleum basin in Libya. POGC Libia commenced operations in 2008.
PGNiG Press Team
