Poland – weekly shale update, 25 - 31 August 2014
Polish Development Investments: the Fund is permitted to invest solely at the shale gas production stage
Polish Development Investments (Polskie Inwestycje Rozwojowe – PIR), an infrastructure development fund, will not provide support to shale gas exploration projects. Once the resources are proven and technology adapted to Poland's geological and environmental requirements, PIR may serve as a tool for government's financial participation in these projects, said PIR President Mariusz Grendowicz interviewed by Dziennik Gazeta Prawna daily.
PEPIO points out the defects of Polish law and calls for removal of bureaucratic barriers
According to Polish Exploration and Production Industry Organization, both Geological and Mining Law and Act on Special Hydrocarbon Tax are not fully satisfactory to the industry and have a number of defects. PEPIO has emphasized the need to remove several bureaucratic barriers that are still faced by exploration companies.
New special Hydrocarbon Bill announced
State Treasury Minister Włodzimierz Karpiński announced that a new special Hydrocarbon Bill is to be drafted with a view in streamlining administrative procedures that are associated with exploration, production and transmission of hydrocarbons. The new Bill will, among other things, shorten the deadlines for consideration of matters by administration authortities and for the appeals, designate a single decision-making authority and replace agreements, permissions, opinions and consents with non-binding opinions.
Special Hydrocarbon Act signed by the President of Poland
President Bronisław Komorowski signed the Act on Special Hydrocarbon Tax. The Act provides for a new system for taxation of mineables, including shale gas and oil. A mineral resource rent tax, ultimately representing 40% of production profits, has been introduced. Moreover, royalty fee paid to the communes, district, province and National Fund for Environmental Protection and Water Management will be increased. The new Act will take effect on 1 January 2016, but the taxes are to be postponed until 2020.
PGNiG to drill 25 wells by the end of 2014
Polish Oil and Gas Joint Stock Company (Polskie Górnictwo Naftowe i Gazownictwo SA) plans to complete or spud in 25 exploration and production wells (for both conventional and unconventional hydrocarbon) by the end of 2014. The Company drilled 15 such wells in the first half of 2014 – PGNiG announced in its press release.
sources: Dziennik Gazeta Prawna, gazlupkowy.pl, rynekinfrastruktury.pl, Kancelaria Prezydenta RP
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