PKN Orlen and PGNiG exploration deal

Polish Oil and Gas (PGNiG) and PKN Orlen have confirmed rumors about their plans to cooperate in jointly searching for oil and gas deposits abroad. Both companies have already agreed on the strategy to create a joint venture which will specialize in this field. "Orlen is our natural partner because of its economic potential and leading position on the domestic oil market," said Mieczysław Jankiel, deputy president of PGNiG, a company which began searching for foreign deposits eight years ago. PGNiG will soon begin exploration in Ukraine, Russia and Kazakhstan. The concern originally said it would spend 10% of its exploration budget in those countries, however in reality only 2% to 3% is spent, which is about zł. 14 million annually. PKN Orlen acting spokesman Krzysztof Mikołajczyk said his company was delighted with the deal, but at the same time added that Orlen is still on the lookout for more partners. (Parkiet, p. 4) A.K.