PGNiG splashes out
According to a statement released by the company, in the next few years PGNiG intends to boost annual domestic gas extraction to around 6.2 billion cubic meters and to increase crude oil extraction to 1.8 million tonnes. It also wants to tap into deposits in foreign markets by 2011.
"We want to start extracting gas and crude oil from international sources in 2011, with the goal that in 2015 a minimum of 1.5 billion cubic meters of gas, known as 'equity gas', will come from the Norwegian coastline," the statement said.
The company also wants to earn an international reputation by being present in a number of key markets, including Algeria, Denmark, Egypt, Libya and Norway.
The news of the expansion plan came on the heels of the company's announcement of its Q3 results. After three quarters, PGNiG's net profit totaled zł.1.24 billion, zł.180 million of which came in the third quarter. The firm said that the financial results were in line with market expectations, but the rising cost of gas imported from Russia could hamper its full-year results.
According to the PGNiG, the fact that its transactions are conducted in US dollars, with prices reflecting roughly a nine-month delay, had the biggest impact on its results. To offset costs, the energy regulator allowed PGNiG to increase gas prices for consumers twice this year, by 14.3 percent in mid-April and by another 11 percent as of November 1.
PGNiG CFO Sławomir Hinc told a news conference that the company expects its debt to rise to zł.10 billion by 2015 due to financing for the planned investment.
