ORLEN is finalizing the integration of companies involved in the production of petroleum and natural gas in Poland. The outcome will be improved operational efficiency, cost reduction, and stabilization of gas extraction levels. The integrator will be ORLEN Upstream Polska, which will consolidate the previously dispersed assets, acquired by the group as a result of mergers with Grupa Lotos and PGNiG.
ORLEN Upstream Polska, a company from the ORLEN Group (previously ORLEN Upstream), was registered in the National Court Register on November 19. The decisions made by the Board and Supervisory Board of Orlen regarding the integration of all Polish exploration and production assets is an important stage in the process of consolidating the ORLEN Group’s extractive assets, with the goal of creating a single, strong entity to allow the group to maximize the economic and operational effectiveness of its domestic exploration resources.
– The upstream segment is one of the pillars of the ORLEN Group’s operations. It has a significant and positive impact on the financial result and simultaneously plays a crucial role in implementing the strategic aspirations of the corporation, which go hand in hand with the energy transformation of the national economy. Natural gas, acting as a bridge fuel, facilitates the move away from coal and supports the development of renewable energy sources, because gas-fired power plants are able to flexibly stabilize a system increasingly dependent on weather-dependent sources. Thanks to our own extraction, we can ensure not only supply security but also an effective evolution of the national economy towards climate neutrality – says Wiesław Prugar, Board Member for Upstream at ORLEN.
In 2023, ORLEN’s natural gas extraction from its own reserves domestically and abroad accounted for over 40% of the blue fuel consumption in Poland. More than half of this was provided by domestic production. Available forecasts indicate that the significance of blue fuel for maintaining the stability of energy supplies in the country will grow. Thus, the main aim of the domestic upstream segment in the ORLEN Group is to maintain gas extraction at this relatively high level for the next few years. To achieve this, ORLEN is investing in the search for and extraction of native hydrocarbons, increasing the use of advanced technologies, and above all, capitalizing on the experience of its employees working in the upstream segment.
– The experience and competence of ORLEN Group employees are unique not only on a national scale but also internationally. The integration of the ORLEN Group’s upstream assets will significantly enhance the management of this vast potential, which until now was dispersed across several entities – emphasized Wiesław Prugar.
Thanks to the ongoing integration, a modern and efficiently operating organization with an organized structure and optimized operational processes is being created. The consolidation of the segment will enable the generation of synergies, contributing to the most rational and economical use of national hydrocarbon deposit resources.
Currently, all entities of the ORLEN Group’s upstream segment are intensely working on integrating resources, processes, systems, and competencies in the various areas of exploratory and extraction activities. The final stage of these actions will be the legal takeover by the integrator of all domestic upstream assets within the ORLEN Group, which is planned for the first half of 2025.
The ORLEN Group operates in the exploration and production sector across four continents. The proven hydrocarbon resources at the company’s disposal at the end of 2023 amounted to 1.268 million barrels of oil equivalent (boe). Work is carried out based on about 360 concessions on 239 deposits. In 2023, the Group’s production of natural gas from both domestic and foreign deposits amounted to about 7.1 billion cubic meters, which represented 42% of the national demand. Domestic natural gas production in 2023 was estimated at about 3.4 billion cubic meters, which corresponded to 20% coverage of national demand.
Source: https://managerplus.pl/orlen-konsoliduje-segment-upstream-integracja-aktywow-ma-poprawic-efektywnosc-i-stabilnosc-wydobycia-gazu-w-polsce-34312
