ConocoPhillips, the largest independent oil and gas producer, withdraws from shale gas exploration in Poland - “Rzeczpospolita” daily announced. The U.S. Company operated in Poland through its subsidiary Lane Energy Poland Sp. z o.o. that held 3 concessions totaling 200 000 ha (Damnica, Karwia and Lębork) and drilled 7 exploratory wells. The Company invested USD 220 million in Poland.
According to Rzeczpopolita, ConocoPhillips announced its withdrawal from exploration in Poland and relinquishment of its three concessions held in the West Baltic Basin. Experts agree that this region is the most prospective in Poland terms of shale gas occurrence.
”We understand the disappointment surrounding this difficult decision”, Tim Wallace, ConocoPhillips country manager in Poland, was quoted as saying in a statement. According to the Company, it has invested approx. USD 220 million in Poland to drill seven wells in its three concessions and deliver the largest in Europe fracture stimulation project in its Lublewo well (July 2014).
”Unfortunately, commercial volumes of gas were not encountered”, the statement reads. According to ConocoPhillips, all of its wells have been properly protected and abandoned. The drill sites are to be reclaimed by September 2015, and following that the Company will close its Warsaw office.
”We appreciate the opportunities ConocoPhillips was offered in this country and wish Poland and the Government success in their continued endeavours”, Wallace added. The company estimates the costs of withdrawal from Poland at USD 90 million gross or USD 30 million net.
ConocoPhillips is the next major company to quit shale gas exploration in Poland. Recently Chevron, the second largest petroleum company in the U.S.A., resigned from shale gas exploration in Poland going in the footsteps of Eni, ExxonMobil, Marathon Oil and Talisman Energy.
The decision of ConocoPhillips was certainly influenced by global oil and gas market developments which meant increasing losses to the company. Due to low oil prices, ConocoPhillips was compelled to make cuts in its budget and expenditures on unconventional oil and gas exploration/production projects.
5.06.2015
source: rp.pl, wyborcza.biz
