By MARYNIA KRUK and MARCIN SOBCZYK
Polish state-controlled oil firm PKN Orlen plans to significantly intensify work on its shale gas concessions in Poland this year and has enough resources to continue exploration without partners, a company executive told a press conference Thursday.
PKN Orlen holds eight exploration licenses for shale gas in Poland, mostly in the country's eastern part.
It finished vertical drilling on Wierzbica, one of the licences, last year and plans to drill horizontally and start hydraulic fracturing of shale rock - a process known as fracking - this year.
The company also plans to enter gas-fired power generation to increase the stability of its revenue and profits, chief financial officer Slawomir Jedrzejczyk said.
"The project aims to stabilize cashflows because refining margins are low, so we're looking for other businesses that are complementary and ensure much more stable cashflows. Power generation is a business that ensures much bigger stability and returns," he said.
On upstream projects, PKN Orlen could look to team up with partners, and such partnerships would be aimed at sharing risk.
"At this stage we have the know-how and investment capacity to do it alone," Jedrzejczyk said.
Dow Jones Newswires