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ORLEN Streamlines Upstream Operations in Poland to Boost Gas Production

ENERGYORLEN Streamlines Upstream Operations in Poland to Boost Gas Production

The ORLEN Group is continuing its integration of domestic oil and gas production assets in Poland as part of a broader effort to enhance operational and economic efficiency within the upstream segment. The integration is being carried out through ORLEN Upstream Polska, a wholly owned subsidiary, which will absorb the Polish extraction assets of the ORLEN Group. The asset transfer is scheduled for the third quarter of 2025, with ORLEN retaining full ownership of the subsidiary.

Consolidation Plan and Structure

In the first stage of the consolidation process, ORLEN will transfer its domestic exploration, extraction, and gas storage assets to ORLEN Upstream Polska. In return, the subsidiary will issue new shares, all of which will be acquired by ORLEN, maintaining its status as the sole shareholder.

The asset separation plan, published on May 14 in accordance with the Polish Commercial Companies Code, has been agreed upon by both companies. The finalization of the process will require approval from ORLEN’s General Meeting of Shareholders and the Shareholders’ Assembly of ORLEN Upstream Polska, both scheduled for the end of June.

Strategic Importance of the Integration

“We see significant potential for developing the upstream segment within the ORLEN Group, which is one of the pillars of our business. Our employees bring internationally unique know-how and expertise. By integrating this potential into a modern, well-structured organization, we aim to optimize operations and enhance the management of domestic hydrocarbon resources,” said Wiesław Prugar, Member of the ORLEN Management Board for Upstream.

“This will allow us to increase domestic gas production to 4 billion cubic meters annually by 2030, in line with the goals of the ORLEN 2035 Strategy. Expanding domestic gas production is crucial to strengthening Poland’s energy security.”

Social Dialogue and Employee Transition

The integration of domestic exploration and production assets, as well as related gas storage operations, will involve the transfer of employees from ORLEN to ORLEN Upstream Polska. These changes are being carried out in consultation with employee representatives, who are considered key partners in the process. Employees will gain new opportunities for career growth within a dedicated company focused on upstream operations and value creation.

Contribution to National and Local Economies

In recent years, domestic natural gas production has met approximately 20% of Poland’s annual gas demand, underscoring its role in ensuring national energy security. Additionally, hydrocarbon extraction brings financial benefits to local governments through an “exploitation fee” tied to production volumes. This fee is distributed as follows: 60% to municipalities, 15% each to counties and provinces, and 10% to the National Fund for Environmental Protection and Water Management. These revenues support local budgets throughout the extraction period and enable authorities to plan and implement more community-focused projects and infrastructure investments.

Global Upstream Presence

The ORLEN Group conducts upstream operations on four continents. In Europe, it holds assets in Poland, Norway, Lithuania, and Ukraine; in North America, in Canada; in Asia, in Pakistan and the United Arab Emirates; and in Africa, in Libya. As of the end of 2024, ORLEN’s total proven hydrocarbon reserves stood at 1,306.9 million barrels of oil equivalent (boe), of which 73% is natural gas and 27% is crude oil and natural gas liquids (NGLs). Reserve distribution includes 710 million boe in Poland, 407.8 million boe in Norway, 147.7 million boe in Canada, 40.5 million boe in Pakistan, and 1 million boe in Lithuania.

Source: ManagerPlus

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