Chevron, PGNiG to Collaborate on Polish Shales

Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) and Chevron Polska are moving closer to a collaboration on shale gas exploration projects in South-Eastern Poland. The two companies signed a Memorandum of Understanding on Thursday.

“I am convinced that a policy of openness, paving the way for partnership and cooperation between Polish and foreign companies, can be of benefit to everyone involved. Both parties could profit from sharing the exploration risk and from reduced costs, including the potential cost of developing the reserves," Jerzy Kurella, acting President of the PGNiG SA Management Board, said in a note.

According to the press release, the two companies could establish a joint company in which each holds a 50% interest in case of successful exploration. 

“The company would obtain four licences in south-eastern Poland: Tomaszów Lubelski and Wiszniów-Tarnoszyn from PGNiG SA, and Zwierzyniec and Grabowiec from Chevron. The newly-established company would also become the operator of those licences, according to a work programme agreed between the partners,” reads the note. 

The two companies did not yet agree on exploration time-line and other details. Binding agreements will follow in 2014.