In 2024, the total natural gas production of the ORLEN Group in Poland and abroad increased to 8.6 billion cubic meters, marking a 20% rise compared to the previous year. ORLEN’s new strategy aims to boost gas extraction to 12 billion cubic meters by 2030 and maintain this level until 2035.
“The upstream sector is one of the key development directions outlined in the ORLEN Group’s strategy until 2035. It significantly contributes to ensuring the country’s energy security and serves as a bridge fuel for a responsible transition. In recent years, natural gas production by ORLEN Group, both domestically and internationally, has accounted for almost half of Poland’s annual demand for this resource. The substantial increase in natural gas production from our own fields in 2024 is an important step toward achieving our goals for the coming years. Our strategy plans a further 40% increase in gas extraction compared to the current record-breaking levels. To achieve this, we intend to focus primarily on investments in Poland and Norway. We are also analyzing opportunities for hydrocarbon extraction growth in the North American market, which could grant access to vast resources while enabling efficient LNG deliveries to Poland,” said Wiesław Prugar, ORLEN Management Board Member for Upstream.
This significant growth was primarily driven by overseas production on the Norwegian Continental Shelf, carried out by ORLEN Upstream Norway. In 2024, production there exceeded 4.5 billion cubic meters, representing an increase of more than 45% compared to 2023. Meanwhile, gas production from domestic ORLEN Group fields stood at approximately 3.3 billion cubic meters, remaining at a similar level to 2023. Production levels in Canada and Pakistan were also comparable to those of 2023, with each country contributing about 0.4 billion cubic meters of gas.
The priority remains increasing domestic natural gas production, which, according to the adopted strategy, is expected to reach 4 billion cubic meters annually by 2030. This will be made possible, among other things, through the ongoing consolidation and optimization of previously dispersed domestic extraction assets into a single entity, ORLEN Upstream Polska. This move will enhance operational efficiency and enable better resource management. ORLEN Group currently holds a total of 223 licenses for hydrocarbon exploration and production in Poland.
The Norwegian Continental Shelf remains a key area for ORLEN Group’s strategy to increase natural gas extraction. ORLEN Upstream Norway currently holds 100 licenses and operates extraction activities at 20 fields. By 2030, the company plans to further increase production from Norwegian fields to approximately 6 billion cubic meters annually. Natural gas extracted from the Norwegian Continental Shelf serves as an important resource delivered to Poland via the Baltic Pipe.
In recent years, domestic natural gas production has covered approximately 20% of Poland’s demand, reaffirming its significance for national energy security. The discovery and exploitation of Polish gas fields not only improve supply security but also positively impact local government finances in regions with hydrocarbon resources. Companies engaged in hydrocarbon extraction are required to pay an extraction fee, which depends on production volume. This fee is distributed among municipalities (60%), counties and provinces (15% each), and the National Fund for Environmental Protection and Water Management (10%). In 2024, ORLEN Group contributed over 110.5 million PLN in extraction fees from oil and gas production. Additionally, local governments received more than 89.5 million PLN in property taxes related to hydrocarbon infrastructure. Furthermore, 18.8 million PLN in extraction fees was allocated to the National Fund for Environmental Protection and Water Management due to ORLEN Petrobaltic’s offshore extraction activities in the Polish section of the Baltic Sea.
ORLEN Group conducts exploration and production activities across four continents. In Europe, besides Poland, operations are carried out in Norway, Lithuania, and Ukraine. In North America, the company is active in Canada, while in Asia, it operates in Pakistan and the United Arab Emirates. ORLEN also has upstream assets in Africa, specifically in Libya. As of the end of 2024, the company holds documented hydrocarbon reserves totaling 1,306.9 million barrels of oil equivalent (boe), with natural gas accounting for 73% and crude oil and NGL for the remaining 27%. These reserves are distributed as follows: Poland (710 million boe), Norway (407.8 million boe), Canada (147.7 million boe), Pakistan (40.5 million boe), and Lithuania (1 million boe).
Source: ManagerPlus
