New PGNiG oil deposit hindered by logistic costs

Polish Oil and Gas (PGNiG) is preparing to exploit oil deposits sited near Lubiatów in the western part of the country, which were discovered at the beginning of the year. "The site will be part of our 2004 investment plan, with mining being launched the following year. About 1,000 tonnes of oil will be extracted daily," informed Stanisław Radecki from PGNiG. He assured that the company is able to finance the investment from its own capital. "The new find should enable us to increase our extraction capacity to over two million tonnes by 2008," Radecki forecast. Oil sector insiders claim that the oil offered by PGNiG is usually of a high quality and there is demand for it. "There are some drawbacks, though. PGNiG has numerous problems with logistics. A substantial part of the costs are related to transporting the oil," said vice-president and commercial director of Grupa Lotos Wojciech Kowalczyk. (Puls Biznesu, p. 5) K.Z.