Latest news with #CEP
Newsweek
9 hours ago
- Business
- Newsweek
Poland Strikes It Rich With Largest Ever Oil Discovery
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The discovery in Poland of one of Europe's most significant conventional oil finds in a decade has been welcomed as a step toward energy security in the NATO country. Central European Petroleum (CEP), a Calgary-based company with Norwegian backing, announced the find at the Wolin East 1 (WE1) well, four miles from the Baltic Sea port city Świnoujście in the northeast of the country. However, energy expert Thomas O'Donnell told Newsweek Thursday that the discovery was "not a game changer." Nevertheless, one think tank in Germany has warned that the discovery could come with substantial costs to tourism and environmental protection. When contacted by Newsweek, the Polish foreign ministry referred to foreign minister Radosław Sikorski's X post that said: "God probably really loves the (coalition) government." Crude oil tanks are seen near a cemetery a few dozen kilometers from Gdansk in Poland on June 6, 2022. Crude oil tanks are seen near a cemetery a few dozen kilometers from Gdansk in Poland on June 6, It Matters In a statement to Newsweek, CEP said that once the Wolin East deposit is officially confirmed it will be Poland's largest oil and associated natural gas field. With the potential to more than double Poland's current estimated oil reserves, it will boost the energy security of a NATO member on the alliance's eastern flank and diversify its fuel sources. What To Know CEP, which holds a 100 percent stake in the Wolin lease area, said it had made a significant oil discovery in the Wolin East 1 (WE1) well, about four miles offshore from the city of Świnoujście on the Baltic Sea. Preliminary estimates suggest the site contains 22 million tons of recoverable crude oil and condensate, along with 5 billion cubic meters of commercial-grade natural gas. These make it the most significant conventional oil discovery in Poland's history and one of the most significant in Europe in recent years. Berlin-based energy expert Thomas O'Donnell told Newsweek the site may produce up to 35,000 barrels a day which is "a fairly good sized well in Texas, but that's not a game changer" amid estimates that this would provide five percent of Poland's needs. However, there could be further oil to discover and the find showed Poland's commitment to find indigenous sources of oil and gas. Poland is a net importer of oil and so the more it can produce itself, the more it will help with the country's balance of payments. This has knock-on benefits in terms of the price of goods and curbing inflation, O'Donnell said. Increased oil production offshore will also focus minds on how to protect energy assets in the Baltic Sea from sabotage, following a number of attacks blamed on Moscow recently, he added. However, the German Institute for Economic Research (DIW) has warned that exploiting the discovery in Poland's section of the Baltic Sea could come with substantial costs to tourism and environmental protection. DIW researcher Claudia Kemfert said in a statement that any accidents would come with high cross-border clean-up costs and fossil energy extraction "runs counter to climate protection targets" and so "extraction therefore cannot be recommended." What People Are Saying Rolf G. Skaar, CEO of CEP said in a statement: "We view this discovery as a foundation for long-term, responsible development of Poland's offshore resources. Wolin East is more than just a promising field – it represents a shared opportunity to unlock the full geological and energy potential of the Baltic Sea." Polish Foreign Minister Radosław Sikorski said on X, formerly Twitter: "Sławosz flies to space, Iga wins Wimbledon, the EU predicts a ton of money for (Poland) and now this too. God probably really loves the KO-PSL-PL2050-Lewica (coalition) government." As well as referring to the oil discovery, the post also mentions Polish astronaut Sławosz Uznański-Wiśniewski and tennis player Iga Swiatek. Energy analyst Thomas O'Donnell told Newsweek: "This is not a game changer, but as far as politics is concerned this shows Poland's commitment to find oil and gas wherever it can." DIW researcher Claudia Kemfert said in a statement that the environmental costs "outweigh the benefits. Extraction therefore cannot be recommended." What Happens Next Further geological documentation must be prepared, submitted, and approved before extraction can start. Piotr Woźniak, former CEO of Polish oil and gas company Polskie Górnictwo Naftowe i Gazownictwo (PGNiG), told Euronews CEP will want to raise funds quickly and document the deposit so that it has full rights to it and the legal ability to exploit it. However, there is also a potential environmental challenge from a German organization, Lebensraum Vorpommern, over concerns about the potential impact of gas extraction.
Russia Today
a day ago
- Business
- Russia Today
German officials attack Polish Baltic Sea oil drilling plan
German officials and environmental groups have hit out at Polish plans to develop a newly discovered oil and gas field in the Baltic Sea, warning of potentially 'catastrophic' damage to local ecosystems, local media reported on Tuesday. Canadian company Central European Petroleum (CEP), which has held exploration rights off Poland's western coast since 2017, announced the discovery of the Wolin East deposit on Monday, describing it as Poland's largest hydrocarbon discovery and one of the biggest in Europe in a decade. The deposit lies 6km off the port of Swinoujscie on the Polish-German border, which divides an island shared by the two countries, known in Germany as Usedom, and is renowned for its holiday resorts. CEP estimates recoverable reserves at over 33 million tons of oil and 27 billion cubic meters of gas, with production potential of more than 400 million barrels of oil equivalent. German officials, however, fear the project will harm local tourism and ecosystems. Mecklenburg-Western Pomerania Environment Minister Till Backhaus told Die Welt the plans run 'counter to the environmental and tourism interests of the German side,' and criticized Poland for not informing Berlin of exploration 'with potentially transboundary environmental impacts' in advance, allegedly in violation of cross-border environmental agreements. Concerns have also been raised about noise, vibrations, and possible damage to marine flora and fauna. In an interview with Bild news outlet, Laura Isabelle Marisken, mayor of the Heringsdorf resort on Usedom, called for clarification from the Polish government and protection from Berlin, stating the area was 'not a place for industrial-political poker games.' Environmental group Lebensraum Vorpommern accused Poland of 'destroying the nature-protected Wolin Baltic Sea coast' and warned of an 'environmental catastrophe.' It said it plans to sue the Polish government. There has so far been no official reaction to the planned extraction from Berlin. Poland considers the discovery a 'breakthrough' that could reduce its reliance on energy imports. Undersecretary of State and Chief Geologist Krzysztof Galos said the deposit may cover 4-5% of annual oil demand, with production starting in 3-4 years, pending permits. The EU has been scrambling to replace Russian energy after supplies dwindled due to Ukraine-related sanctions. Moscow has denounced the restrictions as illegal, warning the bloc will be forced to rely on more expensive alternatives or indirect imports.
Yahoo
2 days ago
- Business
- Yahoo
German officials up in arms over oil, gas deposit found in Poland
Local politicians in north-eastern Germany were up in arms on Tuesday, after news broke that a major oil and gas deposit has been discovered in neighbouring Poland, with some experts also cautioning against extraction. The find off the Polish Baltic coast by Canadian company Central European Petroleum (CEP) was hailed as a possible "breakthrough moment" in Poland, but officials across the border in Germany were quick to point out that extracting fossil fuels should not take priority in times of climate change. "Our future does not lie in oil from the Baltic Sea, but in energy from the sun, wind and biomass," said Till Backhaus, environment minister of the coastal state of Mecklenburg-Vorpommern, which borders Poland. "The project stands for a backward-looking industrial policy in terms of climate policy, which is contrary to the interests of the environment and tourism on the German side," he added. Major breakthrough? The Wolin East offshore oil field discovered by CEP is said to be located around 6 kilometres from the port city of Świnoujście on the fringes of north-western Poland. Parts of the city are located on the island of Usedom, which is divided between Germany and Poland. According to the results of test drilling, the recoverable reserves of crude oil and natural gas are estimated at 200 million barrels of oil equivalent. CEP said the Wolin East site is estimated to represent "the largest conventional hydrocarbon field" ever discovered in Poland and "one of the largest conventional oil discoveries in Europe in the past decade." If the deposit is confirmed, this "may prove to be one of the breakthrough moments in the history of hydrocarbon exploration in Poland," said the country's chief national geologist Krzysztof Galos. "The future development of this site may significantly contribute to strengthening Poland's energy security and reducing its dependence on external hydrocarbon suppliers," he told news agency PAP. Mining could begin in three to four years, with the field estimated to be able to cover 4% to 5% of Poland's annual oil demand for several years, according to Galos. CEP has held a licence for exploration off the western Polish coast since 2017. Officials and experts sound alarm Officials in the German part of Usedom were less euphoric, however, with the mayor of the town of Heringsdorf noting the area's status as a nature conservation area. "We are a spa and holiday resort. We do everything we can to keep our beaches, our town and the sea clean," said Laura Isabelle Marisken. "Heavy industrial gas and oil extraction right on our doorstep, it's obvious that this is a massive intrusion into our natural environment." The German Institute for Economic Research also advised against exploiting the oil field, noting not only possible considerable negative consequences for tourism, but also the risk of cross-border pollution caused by an accident. "In addition, the promotion of fossil fuels thwarts climate protection goals," said Claudia Kemfert, head of the institute's Energy, Transport and Environment Department. "The costs and benefits [of the project] are therefore disproportionate."
Euronews
3 days ago
- Business
- Euronews
What could biggest oil discovery in Poland's history mean for Europe?
Central European Petroleum (CEP) has announced the largest ever oil discovery in Poland's history near Wolin Island. Discovered about six kilometres from Świnoujście, a Baltic Sea port city in Poland's northwest, the well could hold 22 million tonnes of recoverable crude oil and condensate, along with 5 billion cubic metres of commercial-grade natural gas. The broader concession area, spanning 593 square kilometres, is estimated to contain over 33 million tonnes of oil and condensate, as well as 27 billion cubic metres of gas. That would more than double Poland's current estimated oil reserves, which stood at around 20.2 million tonnes in 2023, according to Polish public broadcaster TVP. On Monday, CEP asserted that Poland would have priority in benefiting from the oil and gas it produces. "This is some kind of nonsense" Piotr Woźniak, former CEO of Polish oil and gas company Polskie Górnictwo Naftowe i Gazownictwo (PGNiG), said in an interview with Euronews. According to 2019 data, PGNiG produced 1.2 million tonnes of oil in Poland and abroad. "The priority is not Poland, it is not Russia, it is not Sudan or the Ivory Coast. The priority is given to whoever discovers the mineral. If it is discovered by this company, it has priority over all others. Except that it must first document the deposit. This is what European law states," Woźniak said. "They care about cash, not about any nation. They can sell it to whoever they want. Of course, with all the international considerations, they can't sell it to the Russians or the Medellin cartel in Colombia either, because everyone would be furious," he added. 'Showing off' in front of a possible buyer Woźniak said that CEP will want to raise funds as soon as possible. "It needs to document that deposit of its own so that it has full rights to it and the legal ability to mine it. It has to drill, and to drill, it has to spend money," he said. "They're kind of flaunting themselves here in front of a possible buyer, because they know that we [in Poland] want to have diversification of sources, that we're betting on — at least from the rationale you hear from the government administration — our own resources," Woźniak added. "They should be congratulated because it rarely happens in such quantities, it is all the more reason to congratulate them," the former CEO of PGNiG said. Woźniak was critical of the sluggishness of the Polish state-owned company Orlen, which took over PGNiG in 2022 and had a chance to uncover the resources that CEP can now extract. "Orlen has not produced a single cubic metre of gas and not a single barrel of oil in Poland. For 14 years they did nothing, taking obviously fat money, neither under one government, nor under another, nor under a third. Nothing came of it," he says. "How did a company the size of CEP, which fits in a liquor glass, discover huge resources, where was the state then?" asks Wozniak rhetorically, referring to Orlen. Will it help to become independent from Russia? According to Woźniak, the extraction of deposits from the wells discovered by CEP will not shake up the European energy balance. Yet Poland itself may do so, he said. The deposits may reach 22 million tonnes of oil, and, as the expert emphasised, "the processing capacity of Polish refineries is about 24 million tonnes of crude oil a year, which is the amount we are able to process within Poland's borders". Polish energy analyst and journalist Wojciech Jakóbik told Euronews that from "the point of view of a major energy policy — this is not a breakthrough". "But from the point of view of investment in the Baltic Sea — yes, because it is several times more than we are currently extracting in the Baltic Sea," Jakóbik said. "It is also a positive investment signal that there could be more of these deposits, that it pays to look for raw materials in our basin, so who knows if there won't be more news on this from other investors. "Investors have moved to look for hydrocarbons all over Europe. Poland is not isolated. We hear, for example, that Germany, in cooperation with the Dutch, wants to extract hydrocarbons in the North Sea and beyond. "This is further evidence that we have a change in Europe. Tough security is making us look again more favourably at gas and oil extraction from Europe," Jakóbik added.
Canada News.Net
3 days ago
- Business
- Canada News.Net
Major oil, gas deposit discovered off Polish Baltic coast
WARSAW, 22nd July, 2025 (WAM) -- The Canadian company Central European Petroleum (CEP) on Monday announced it has made a major oil discovery off the Polish Baltic coast. According to the results of test drilling, the recoverable reserves of crude oil and natural gas are estimated at 200 million barrels of oil equivalent, the company said. CEP said the Wolin East offshore oil field is located around 6 kilometres from the port city of winoujcie, which is in the extreme north-west of Poland on the border with Germany. The company said the Wolin East site is estimated to represent "the largest conventional hydrocarbon field" ever discovered in Poland and "one of the largest conventional oil discoveries in Europe in the past decade." Mining could begin in three to four years. The field could cover 4 percent to 5 percent of Poland's annual oil demand for several years.
