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Euronews
a day 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.
Yahoo
04-07-2025
- Business
- Yahoo
Orlen may face nearly $300m bill after arbitration tribunal favoured Gazprom
Polish refiner ORLEN may face a financial impact of nearly $300m following an arbitration tribunal's decision that supports Russia-based Gazprom's right to charge higher retroactive prices for gas supplies, reported Reuters. This development comes amid a series of legal disputes concerning the prices Poland paid for Russian gas from 2017 to 2022. The tribunal's ruling on 1 July adjusted the gas prices under the contract between PGNiG, now part of Orlen, and Gazprom for the years 2018 and onwards, potentially leading to a cost of $290m for Orlen. However, the terms of settlement have not been specified, and no compensation has yet been awarded to Gazprom. Orlen has stated that it operates within legal boundaries and adheres to sanctions that currently prohibit any payments under the judgment. The tribunal is expected to make further rulings on disputes over prices for the years 2021 and 2022. Additionally, it will address claims related to Gazprom's cessation of gas supplies to Poland in 2022. These ongoing legal battles are part of Gazprom's wider confrontations, with claims from European companies totalling at least €17bn ($20.05bn), as per Reuters' calculations. In a separate development, Orlen has signed its fourth contract with Ukraine's Naftogaz this year to supply 140 million cubic metres (mcm) of natural gas, sourced from the US. The gas will be regasified at the LNG terminal in Świnoujście, Poland, before being transported to Ukraine. The previous three contracts included a combined volume of approximately 300mcm of natural gas. The latest contract is a continuation of the commercial cooperation framework signed by Naftogaz and Orlen in March 2025, which focuses on the supply of natural gas LNG. Orlen management board vice-president Robert Soszyński said: "Thanks to our continually developed trading expertise, proprietary fleet of LNG transport vessels and reserved regasification capacities, we are well positioned to support Ukraine in diversifying both the sources and supply routes for natural gas. 'The summer period, which is crucial for replenishing storage facilities, adds to the importance of these deliveries. Our activities align with the European Union's REPowerEU objectives and even surpass them. Orlen not only ceased all Russian gas imports over three years ago, but today we are also in a position to assist neighbouring countries such as Slovakia and Ukraine on their path toward energy independence from Russia.' Earlier this week, Orlen announced the cessation of Russian oil purchases for its refineries, effectively ending its reliance on Russian energy resources. "Orlen may face nearly $300m bill after arbitration tribunal favoured Gazprom" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
02-07-2025
- Business
- Reuters
Orlen may owe $290 million as Gazprom scores partial gas price dispute win
WARSAW, July 2 (Reuters) - Polish oil and gas company Orlen ( opens new tab could face a bill of almost $300 million after an arbitration tribunal ruled that Russia's Gazprom ( opens new tab had the right to retroactively charge higher prices for gas supplies to Poland, it said on Wednesday. Orlen, which took over Polish gas monopoly PGNiG in 2022, is in several disputes with Gazprom in an arbitration tribunal in Stockholm over prices Poland paid for Russian gas from 2017 to 2022. Gazprom is fighting numerous legal cases, with combined claims of at least 17 billion euros ($20.05 billion) from European companies, according to Reuters calculations. The July 1 arbitration ruling raises gas prices under the contract between PGNiG and Gazprom between 2018 and the next potential change of price from the years 2020 and 2021, which Orlen estimates could cost it $290 million, the company said. The ruling did not specify the terms of settlement between the companies and did not award any compensation for Gazprom, leaving it up to the companies to agree terms of settlement, Orlen said, adding that it cannot make any payments to Gazprom under existing regulations. "Orlen operates in accordance with the law and complies with applicable sanctions, which currently prevent it from making any payments under the judgment," the company said. In the next stage, the tribunal will rule on both sides' claims over prices in 2021 and 2022, as well as claims resulting from Gazprom's halt of supplies to Poland in 2022, the Polish company said. ($1 = 0.8477 euros)
Reuters
29-05-2025
- Business
- Reuters
Poland cuts household gas prices, raising chances of lower interest rates
WARSAW, May 29 (Reuters) - Poland's energy market regulator has cut the gas prices that wholesaler PGNiG Obrot Detaliczny charges to households and vulnerable users including hospitals and schools by 14.8%, increasing the chance of more interest rate cuts. Gas distribution fees remain unchanged, which will result in average gas bills falling by between 8.1% and 11% depending on the volume of consumption, the regulator, URE, said on Thursday. Gas prices for households are set by the regulator and have a major impact on inflation. Uncertainty over energy prices has been the main factor behind central bank's reluctance to cut interest rates faster. As a result of the cut in gas prices, inflation may fall close to 2.5%, the mid-point of the central bank's target range, in July, and the central bank may cut rates further, ING economists said on X following the announcement. "Our current scenario assuming 75 basis points of cuts by the end of the year and to 3.75% in 2026 is the minimum scenario," they said. The rate is currently 5.25%.
