The execution of the consolidation project will be possible thanks to the acquisition by PGNiG S.A. of new shares, with the value of PLN 2m, in Górnictwo Naftowe Sp. z o.o., a company responsible for managing the consolidation process.

The principal objective of the consolidation is to build an organisation that will be able to effectively compete on domestic and foreign markets and successfully participate in tenders for large investment projects.

The consolidation will include, among others, BN Naftomontaż Sp. z o.o., BUG Gazobudowa Sp. z o.o., ZRUG Pogórska Wola Sp. z o.o., and ZUN Naftomet Sp. z o.o., which will be combined to form a new entity - PGNiG Technologie Sp. z o.o., to be transformed into a joint-stock company in the future.

One of the key tasks to be undertaken by the company is the preparation and adoption of its strategy, defining the business scope and main development directions. The strategy will serve as a basis for implementing service and engineering projects.

Furthermore, the Extraordinary General Shareholders Meeting of PGNiG SA gave its approval for the use of the shares held by PGNiG SA in PGNiG Norway AS as security for a loan currently being negotiated with financial institutions. The Extraordinary General Shareholders Meeting of PGNiG SA also agreed to use the loans advanced by PGNiG SA to PGNiG Norawy AS as additional security for the loan.

 The approval given by the Extraordinary General Shareholders Meeting will make it possible to finalise the negotiations with banks and obtain financing for the Skarv project. Production from the Skarv field is to be launched in the second half of 2011. Until then, approximately USD 300m will need to be invested to complete the project, which is expected to produce approximately 0.5bn m3 of natural gas and 0.4m tonnes of crude oil annually.

Joanna Zakrzewska

Spokesperson for PGNiG SA