Petrobaltic teams up with Gaz de France to explore Baltic gas reserves

Gdansk-based crude oil explorer Petrobaltic has announced it is to diversify its operations into other fossil fuel operations. As part of this strategy, the company is teaming up with Gaz de France (GdF) to explore the Baltic's vast underwater natural gas reserves, measuring between 7.5 and 10 billion cubic meters. The costs of exploration are estimated at $12 million while the entire venture would cost between $150 million and $160 million. Petrobaltic has a license to explore these underwater reserves and plans, if financing deals are reached with GdF, to begin extracting gas as early as 2003. The likely recipient of the gas would be Zarowiecka Elektrownia Gazowa, a new 750-megawatt energy plant projected for construction by AES of the United States. It is estimated that the Baltic gas reserves could suffice for the energy station's needs for 20-25 years. Petrobaltic has recorded an increase in earnings of over 30% year-on-year totaling about zl.78 billion, a record in the firm's history, which is in part due to the high petroleum prices on the global markets.(Puls Biznesu, p.10)