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Compare 2007 - 2009

According to the PKN ORLEN Group strategy communicated in November, we are planning to continue the development of recovery activities to ensure access to our own raw material resources, which will result in the development of crude oil trading activities, increase in goodwill and a stronger competitive position. By searching for our own oil and gas fields, we will be implementing the national energy security policy.

A dedicated exploration and production organisation established within PKN ORLEN is capable to competently evaluate E&P projects, both in terms of their technological potential and the purposefulness of planned acquisitions. Ongoing monitoring of the global E&P project market enables full recognition of acquisition possibilities. The existing, constantly developing database of such projects enables their adequate selection and matching with the Company’s needs and possibilities.

The main 2008 projects in the upstream sector concerned:

  • Commencement of an E&P project on the Baltic shelf within the Latvian Economic Zone;
  • Execution of an E&P project in the Lubelskie basin region;
  • Studies and analyses of 79 E&P projects/assets in various geographic locations, of which 6 were forwarded for detailed due diligence analysis;
  • Full analyses of selected projects for E&P asset purchase or corporate acquisition outside Poland;
  • Cooperation with partners with assets located on the territory of Poland.

Two important projects are in progress and will be continued over the next years: the E&P project in the Lubelskie basin and the E&P project in the Baltic Sea.

In April 2008, under the Baltic Sea project, we purchased, via a dedicated ORLEN International Exploration and Production Co. BV company, shares in a company authorised to conduct E&P activities within the Latvian Baltic shelf. In 2009, we are planning to expand PKN ORLEN presence within the Baltic shelf and continue exploration activities with re-interpretation of historic data, and acquire additional 2D/3D seismic data.

We assume that by achieving strategic assumptions in the field of oil and gas exploration and production, we will be able to stabilise more efficiently the Company’s margin levels. A portfolio of upstream assets sustainable in terms of project progress, geographic location and type of raw material, will secure stable growth at an acceptable risk level. These tasks will be implemented in close cooperation with upstream companies. Cooperation with experienced partners enables us to participate in hydrocarton management and recovery projects and to have direct access to information on potential upstream projects in regions covered by our partners. Another objective of such cooperation is upstream risk optimisation through mutual support in the selection, evaluation and implementation of projects as well as access to a partner’s know-how and qualified and experienced personnel. Cooperation with external partners enables PKN ORLEN to achieve sustainable growth at an optimum risk level.

Planned E&P asset portfolio structure (%)

Planned E&P asset portfolio structure (%)

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