PKN Orlen to branch out with Petrobaltic and PGNiG

Plock-based fuel concern PKN Orlen intends to expand by launching exploration operations. Orlen's president, Zbigniew Wrobel, claims that the idea can be best realized through co-operation with Polish partners. "In order to obtain access to reserves of oil within the territories of eastern countries we would like to use the experience of Petrobaltic as well as the mining and exploration division of Polish Oil and Gas (PGNiG)," Wrobel told Parkiet. He added that both companies have limited possibilities in the field of oil exploration themselves, though their connections could help Orlen become involved in such investments as both Petrobaltic and PGNiG enjoy excellent relations with other players on the market. According to unofficial information, Orlen and Petrobaltic once attempted to obtain a license to explore oil in Congo in a territory said to be located close to an unloading terminal and a pipeline. Fuel sector analysts stress, however, that the Plock concern needs to form its own exploration division. "Launching this type of business would be rather hazardous as it is not our field. However, the profit margins from oil exploration are very high, which greatly affects a company's overall profits and is very tempting," said Wrobel. (Parkiet, p. 1) A.Z.