PGNiG in Talks to Partner for Shale Gas

Quoting unofficial sources, Dziennik Gazeta Prawna reports that PGNiG is in partnering discussions with Centrica, BP and Shell on the Polish gas monopoly's shale gas licenses.

Discussions reportedly involved the partnering or exchange of shale gas concessions for other opportunities.

The paper quotes Radoslaw Dudzinski, Vice President of PGNiG as saying that the company recently conducted a tender procedure, presenting some of its concessions to explore for shale gas as a potential area of ​​cooperation. There were several concerns that the proposals put on the table what they can offer in return - he said.

It is known that these companies are interested in a specific concession in Poland.

Grzegorz Pytel,  an expert on natural gas market in the Sobieski Institute, says that this is a good strategy for PGNiG. Diversification is the key to spreading the risks inherent in exploration and mining. That's what you should do the business - he says.

According to Pytel, the shale concessions are difficult to valuate at this early stage. Ideally, PGNiG will manage to turn prospective exploration licenses in Poland into interests in producing, cash flowing assets.

Source: Read the Full Article (in Polish) HERE