Under a five-year programme, PGNiG Finance AB will be able to issue fixed or floating rate bonds with maturities of up to 10 years. The proceeds raised through the issue of bonds by PGNiG Finance AB will be used to grant a loan to PGNiG, with a view to financing the Company's investment plans.

If PGNiG Finance AB decides to issue Eurobonds, it will be able to issue the first tranche, worth EUR 500m, at the end of September or beginning of October 2011.

Furthermore, PGNiG SA provided a guarantee of up to EUR 1.5bn in respect of the liabilities of PGNiG Finance AB under the Eurobond issue, which remains valid until December 31st 2026.

The financial terms of the guarantee will be correlated with the terms of the Eurobond issues to be carried out by PGNiG Finance AB under the programme.

PGNiG Finance AB is a wholly-owned subsidiary of PGNiG SA.

Proceeds from the Eurobond issue will be used to finance investment projects envisaged in
PGNiG Group's strategy, the implementation of which is of vital importance for an improvement of Poland's energy security and the Group's value growth. In line with the Development Strategy until 2015, as updated in June 2011, in 2011-2015 the PGNiG Group intends to spend PLN 27bn on investment projects. Over a half of this amount (i.e. approximately PLN 15bn) will be spent on exploration for crude oil and natural gas, including shale gas.

In 2008-2010, the Group spent PLN 10bn on investment projects such as construction of new oil and gas production facilities, extension and construction of underground gas storage facilities and exploration for hydrocarbons.

Extension of the Lubiatów-Międzychód-Grotów production facility is a key investment project currently under way. Given the progress of work, the facility should come on stream in
 2012, a year ahead of schedule. In 2010-2011, this project consumed the largest amounts of the planned expenditure, totalling approximately PLN 1bn. Furthermore, work on development of the Skarv field is nearing completion. In autumn, PGNiG SA, as the first Polish company, will commence hydrocarbon production abroad. Starting from 2012, average annual production from this Norwegian field is expected to reach approximately 0.4 million tonnes of crude oil and approximately 0.4 billion cubic metres of natural gas.

Extension of the Wierzchowice Underground Gas Storage Facility, the largest such facility to be operated by PGNiG, will be completed as scheduled. This project, aimed to increase the facility's storage capacity by 600 million cubic metres, is scheduled for completion in Q3 2011. The extended Strachocina Underground Gas Storage Facility came on stream in July 2011.

Continued projects include construction of the Kosakowo Underground Gas Storage Cavern Facility and extension of the Mogilno Underground Gas Storage Facility. In 2011, capital expenditure on extension of underground gas storage facilities will exceed PLN 650m.

In 2011, the PGNiG Group plans to spend in total approximately PLN 5.6bn on investment projects, including over PLN 1bn on oil and gas exploration in Poland and abroad and over PLN 1.5bn on hydrocarbon production domestically and abroad. Approximately PLN 1bn per annum will be applied towards projects involving modernisation of the distribution network and construction of new service lines.

Press Team

PGNiG SA