Chevron inks Poland shale MoU

Chevron+Texaco+Ecuador12 December 2013, News Wires – Chevron has signed a preliminary deal with Poland’s PGNiG that may lead to the joint exploration for shale gas in the south-east of the country.
The US supermajor could set up a joint venture with the state-owned Polish player, with a quartet of licences in their sights.

The memorandum of understanding struck on Thursday may lead to a binding agreement as soon as next year, PGNiG said.

In the event of exploration success, the pair would set up a joint venture that would take in Chevron’s two licences in the south-east of the country – Zwierzyniec and Grabowiec – as well as PGNiG’s pair in the same region – Tomaszow Lubelski and Wiszniow-Tarnoszyn.

The joint venture, which would be owned on a 50:50 basis, would then be operator of the licences.

The collaboration is intended to increase economies of scale by sharing risk and exploration cost, with PGNiG relying on Chevron’s experience in the unconventionals market.

Poland is trying to make its unconventionals market more attractive with a draft law to regulate the exploration for and extraction of shale gas set for approval by the end of the year.

Companies have begun an exodus from Poland amid unclear regulations and mixed well results.

US supermajor ExxonMobil made the most high profile departure to date, abandoning concessions earlier this year. Marathon Oil and Talisman Energy followed suit. Other global players like Chevron and ConocoPhilips have stayed on, however.

– Upstream

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