INVESTMENTS IN 2019
| Capital expenditure in the Exploration and Production segment in 2018–2019 | |||||
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Capital expenditure1 on property, plant and equipment made by the PGNiG Group in 2019
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Performance vs CAPEX plan
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2019
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2018
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2017
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20192
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Exploration and Production, including:
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2,508
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2,232
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1,214
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58%
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1
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Norway
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1,414
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1,149
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275
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60%
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2
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Pakistan
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136
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94
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100
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55%
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3
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Libya
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4
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9
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4
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48%
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| 1) Including capitalised borrowing costs. 2) Based on expenditure incurred and planned in 2017–2019, net of expenditure on acquisition of hydrocarbon deposits in Norway. |
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Key projects and investments in Poland
In 2019, PGNiG’s capital expenditure in the Exploration and Production segment amounted to PLN 997m and was in line with the figure reported for 2018. Major investment projects implemented in 2019 included:
- Drilling of the Jaworze Górne 1 research well: PLN 47.7m;
- Drilling of the Rokietnica 6H appraisal well: PLN 23.6m;
- Drilling of the Granówko 1 exploration well: 23.9m;
- Drilling of the Przemyśl 303K production well: PLN 15.5m;
- Drilling of the Zbąszyń 11H production well: PLN 22.3m;
- Drilling of the Kramarzówka 3H appraisal well: PLN 22.3m;
- Fracturing and formation tests in the Dukla 3H well: PLN 12.5m.
PGNiG’s capital expenditure on exploration activities in Poland totalled PLN 594m. Key development projects (in terms of allocated CAPEX) in 2019 included:
- Development of the Gnojnica 2K, 3K OZG Góra Ropczycka – KZG Czarna Sędziszowska wells: PLN 6.7m, completed in 2019;
- Development of the Miłosław gas field – Miłosław 5K/H well: PLN 4.1m, completed in 2019;
- Redevelopment of the Załęcze gas compressor station and upgrade of the boiler house: PLN 11.6m, completed in 2019;
- development of the Przeworsk 24 – KGZ Jarosław well – PLN 2.3m, completed in 2019,
- power generation unit Gilowice 1 K – PLN 6.7m, completed in 2019,
- modernisation of the pipeline system to reduce working pressure on OC Buszewo – PLN 5.2m, completed in 2019.
Key projects and investments abroad
PGNiG’s total capital expenditure on foreign production operations reached PLN 147m. This figure includes the capital expenditure made in 2019 in Pakistan, amounting to PLN 136m, up 45% on 2018.
2019 was a record year for PGNiG Upstream Norway in terms of its capital expenditure, which exceeded NOK 3.24bn. Capital expenditure made in 2019 in Norway reached NOK 1.58bn (net of acquisitions). In 2019, the company took steps to maintain production from its existing fields while preserving good operating performance by investing in:
- Production from additional wells in the Gina Krog field in the first half of 2019;
- Development of the Ærfugl and Skogul fields;
- acquisitions and development of the Duva field, with three production wells to be drilled in 2020: two producing crude oil and one producing natural gas. Based on the development plan, another oil producing well may be drilled.
- preparation of the Tommeliten Alpha field development concept,
- acquisition of the King Lear field.
More information on capital expenditure in the Exploration and Production segment in the period 2017-2022 and a detailed description of investments planned and implemented in 2020 is available here.