The decision of Polish Oil and Gas Company on construction of areceiving terminal for liquefied natural gas in Swinoujscie has beennamed the business event of the year 2006 in Western PomeranianVoivodeship. Today, in Szczecin Tadeusz Zwierzynski, Vice President ofPGNiG in charge of strategic projects received the prestigious RegionalForbes Executive Award 2006.

On 10 September, Polish Oil and Gas Company, as part of thepublic tender held under a negotiated procedure with publication forpreparation of “The process engineering and architectural andconstruction design documentation, as required under the constructionlaw for obtaining all the necessary permits including the buildingpermit for the project titled Liquefied Natural Gas RegasificationTerminal in Swinoujscie” sent out invitations to submit preliminarybids to three potential Contractors:

On 6 September, PGNiG successfully went through theprequalification process under the proceedings carried out by theNational Oil Corporation (NOC) of Libya for selection of the operatoron hydrocarbon exploration and production licenses.

PGNiG has been traditionally supporting the debate on thefuture of the European energy market and once again is participating inthe Economic Forum in Krynica. The long standing co operation betweenPGNiG and the Institute for Eastern Studies in organisation of theForum is a manifestation of the constant need for meetings betweendecision makers and experts and reflection within the formula a “Davosof the Central and Eastern Europe”.

After two quarters of 2007, the PGNiG Group generated a netprofit of PLN 1,135 million, which means a 55 per cent increasecomparing to the same period in the preceding year.

On 18 July 2007, in Cairo, PGNiG SA initialled the Arabic and English version of the Concession Agreement for Exploration and Production of Hydrocarbons in the Arab Republic of Egypt, in the Bahariya Block. PGNiG presented also the relevant preliminary bank guarantee.

Further to the information published in the PAP news service inrelation to the project concerning development of the LNG terminal,PGNiG informs that:

On 22 June, the company under the name of Polskie LNG, represented by Polish Oil and Gas Company, announced a tender for preparation of “Process engineering and architectural and construction design documentation, as required under the construction law for obtaining all necessary permits including the building permit for the project titled Liquefied Natural Gas Regasification Terminal in Swinoujscie”.

On 28 June 2007, the Extraordinary General Meeting of PGNiG decided, among other things, on distribution of the profit for the year 2006 in the amount of PLN 1,582,268,076.22 in the following manner:

On 20 June, 2007, PGNiG SA joined to and acquired free of charge 15% interest in the Consortium led by Gassco, which develops the SKANLED gas pipeline from Karsto in Norway to Sweden and Denmark.