Orlen energy cautious in assessing potential of CEP's Wolin project

“Orlen is following with interest publications on the work carried out by various operators on concessions in Poland, including the Wolin concession, understanding the importance of increasing the domestic hydrocarbon resource base for Poland's energy security. This is consistent with Orlen's 2035 strategy to increase natural gas production to 12 billion cubic meters, including 4 billion cubic meters from deposits in Poland," Orlen's press office wrote.

Currently, the Orlen group has a total of more than 200 licenses to explore and produce hydrocarbons.

"The general nature of the data on the announced discovery reported in the media, the lack of details on the well drilled and the preceding seismic survey do not allow us to change Orlen's previously developed assessment of the potential of this project, based on the geological, economic and environmental rationale for the project," Orlen’s press release said.

According to PAP Biznes unofficial source, Orlen representatives monitored the effects of the exploration work completed on the Wolin concession by Central European Petroleum in February this year. They also tried to meet with the CEP to discuss details of the discovery, but no such meeting took place.

CEP announced on Monday that it had made a major oil discovery at the Wolin East 1 (WE1) well in the Baltic Sea, approximately 6 kilometres from Swinoujscie.

CEP's CEO Rolf Skaar told PAP Biznes that Central European Petroleum will begin searching for partners to extract oil and gas from the Wolin concession, pointing out that he would be happy to cooperate with Polish companies.

The Wolin East deposit is estimated to contain 22 million tonnes of recoverable hydrocarbons in the form of crude oil and condensate, and 5 billion cubic metres of commercial-quality gas.

The total resources of the Wolin concession are estimated to exceed 33 million tonnes of recoverable crude oil and condensate and 27 billion cubic metres of commercial-quality gas.

According to Rolf Skaar, the Wolin East oil and natural gas field is the largest conventional hydrocarbon deposit discovered to date in Poland and one of the largest conventional oil deposits discovered in Europe in the last decade.

Poland's oil demand is approximately 700,000 barrels per day. Domestic production provides only about 16,000-18,000 barrels per day, and 95 percent of oil is imported.

The CEO of Central European Petroleum said that when the production starts, daily oil production in Poland will at least double. This will have a significant impact on domestic oil production and will be very beneficial for Poland's energy security.

He added that once production begins, it will also increase domestic gas production by about 20 percent. Estimates of 16.5 billion cubic metres of gas have been recently confirmed.

At the end of February, Central European Petroleum completed drilling its first well, Wolin East 1 (WE1), on the Wolin concession. At the time, the company assessed the preliminary results obtained during drilling as "encouraging".

The Wolin concession covers an area of 593 square kilometres and was granted by the Ministry of Climate and Environment.

Central European Petroleum Ltd is a Canadian company based in Calgary, engaged in the exploration and production of hydrocarbons, majority-owned by Norwegian investors.

Its subsidiary, CEP Central European Petroleum, holds the Wolin licence in north-western Poland and acts as the operator of this licence.

pr/ gaw/