PGNiG - Polish Oil & Gas Company

11/27/2019 | News release | Distributed by Public on 11/27/2019 03:55

PGNiG to commence operations within Ras Al Khaimah licence area

The first phase will involve geophysical survey to be performed using 3D seismic imaging. The work is due to start in December.

'This is a turning point for our operations in the United Arab Emirates, one of the leading regions in terms of global hydrocarbon production. The survey will help us estimate the licence area's resource potential and identify the best drilling locations,' said Piotr Woźniak, President of the PGNiG SA Management Board.

Nishant Dighe, CEO of RAK GAS LLC and the Chief Executive of the Ras Al Khaimah Petroleum Authority commented 'The RAK Petroleum Authority welcomes the commencement of onshore 3D seismic operations by PGNIG in Block 5 Ras Al Khaimah. This activity has taken significant preparation and planning to reach this stage and the start of operations will constitute a major milestone in our shared strategy of identifying the untapped hydrocarbon potential within this geologically attractive yet under-explored region of the UAE. We strongly support the view that application of modern day 3D seismic technology has every chance of identifying subsurface structures that will be candidates for future oil and gas drilling.'

The survey will be performed by Geofizyka Toruń, a PGNiG Group company, one of the world's leaders in its field, which has rendered its services to leading upstream sector operators, including Eni, Shell, Total, and OMV. In Poland, Geofizyka Toruń has carried out Europe's largest 3D seismic survey to determine the geological profile of an area covering 1,280 square kilometres.

To perform the survey in the emirate of Ras Al Khaimah, Geofizyka Toruń will use four vehicles to generate seismic waves and approximately 30,000 sensors (geophones). The vehicles will be moving around an area of about 350 square kilometres, while the geophones will be spaced across approximately 735 square kilometres. The company intends to employ a staff of about 300 to do the job.

The survey will be carried out from December 2019 until the end of February 2020. The processing and interpretation of the acquired seismic data will last until the fourth quarter of 2020. Based on the results, PGNiG will decide on further steps with regard to the licence area.

PGNiG's licence in Ras Al Khaimah provides for three two-year exploration periods, which may be extended by a two-year appraisal period and thirty-year production period. After each exploration stage, the company may choose to relinquish its interest in the licence.

PGNiG was awarded the Ras Al Khaimah licence in the licensing round held in December 2018. In January, the company signed an exploration and production sharing agreement with Ras Al Khaimah Petroleum Authority and RAK GAS LLC. A dedicated branch headquartered in Ras Al Khaimah is responsible for PGNiG's operations in the emirate.

PGNiG SA is the leader of the Polish natural gas market and one of the largest Central and Eastern Europe's companies in terms of revenue. The company is listed on the Warsaw Stock Exchange. PGNiG's business comprises exploration for and production of hydrocarbons and import of gas. Through its key subsidiaries, PGNiG is also active in the area of storage, sale and distribution of gas and liquid fuels, as well as heat and electricity generation.

In addition to oil and gas production in Poland, PGNiG is engaged in upstream operations on the Norwegian Continental Shelf and in Pakistan. In Norway, the Group has been present since 2007, currently holding 27 licences and operating four of them. In Pakistan, the company has been active for more than 20 years, producing gas from the Rizq and Rehman fields.