GRI indicators:

  • 103-1
  • 103-2

Output and production in 2019

units Canada Poland
Oil and natural gas reserves (2P) million boe 186.3 11.0
Output million boe/ year 6.3 0.4
Average production thousand boe/ day 17.2 1.0
Output structure (liquid/gas) % 49/51 -/100
Drillings (net)1 number 1.6 3.0
Licences number 20
1 The number corrected with the share of other partners.

In line with its strategy, the ORLEN Group intends to continue its exploration and production efforts to increase output and secure wider access to its own oil and gas resources under a prudent continuation scenario, which enables flexible response and adaptation of upstream capex to price changes on the hydrocarbon market.

The international team of experts from Poland and Canada has the necessary competence and experience to carry out PKN ORLEN’s mission and vision of exploration for and production of crude oil and natural gas through efficient management of a diversified portfolio of assets.

At the end of 2019, the ORLEN Group held on its own or with a partner (PGNiG) 20 exploration and appraisal licences in Poland, covering a total area of almost 13,500 km2 and spread over six provinces, with 2P reserves of 11.0 million boe. The ORLEN Group holds 100% interests in nine licences, 49% interests in nine licences and 49% interests in parts of two licences within a separate area covered by the Sieraków Joint Operations Agreement.

In Alberta, Canada, the ORLEN Group is a recognised operator and holds exploration and production assets covering a total area of 274.4 thousand acres (1,100 km2), with total 2P reserves of 186.3 million boe.

The ORLEN Group conducts exploration and production projects in Poland and Canada. The total resources (2P) of oil and gas at the end of 2019 amounted to 197.3 million boe.

Operations in Poland

The Group’s operations in Poland comprised hydrocarbon exploration and production. Currently, in Poland gas is produced in cooperation with PGNiG S.A. The share of production attributable to the ORLEN Group reached the annual average level of 1.0 thousand boe/d. Basic exploration work in Poland was conducted in four oil provinces.

In the Kraków Oil Province, work was performed under three Projects. Under the Karpaty Project, 3D seismic data acquired in 2018 was processed and interpreted. In addition, geophysical profiles were digitised, and data collected from old boreholes within the area was interpreted to determine its lithological and reservoir characteristics. Under the Miocene Project, 3D seismic data was acquired, processed and interpreted to map further prospects within the region. Two exploration wells were drilled on the Bystrowice deposit, and the well drilled in 2018 which had discovered the deposit was completed to start production. Conceptual, design and documentation work was also carried out with a view to further drilling and development of the Bystrowice field. The general contractor was selected to execute Stage 1 of the Bystrowice field development.

In 2020, work will be continued to develop the field and further analyses will be carried out prior to drilling another well within the area.

Under the Bieszczady Project, implemented together with a partner (PGNiG S.A.), the drilling of a well, commenced in late 2018/early 2019, was finished. In addition, the processing and interpretation of 2D seismic data acquired in the previous year were completed. As part of further exploration work, another well was spudded within the area.

In the Poznań Oil Province work was being performed on two projects implemented under a Joint Operations Agreement with PGNiG S.A. Under the Sieraków Project, work was under way to complete the relevant legal formalities and design a horizontal well as part of the field development. Conceptual work was also being continued to develop the crude oil field.

Under the Płotki Project, construction and assembly work was being carried out to develop the Miłosław-5H well (on the Miłosław field), with production from the well launched in early August. Planning and preparatory work was also going on to develop the Chwalęcin discovery made in 2018. 3D seismic was acquired, processed and interpreted; and an old 3D dataset was reprocessed and interpreted.

In the fourth quarter, another exploration well was spudded within the area, and 3D seismic data was acquired over its south-western part.

In the Gdańsk Oil Province, work was being carried out within five licence areas under the Edge Project. In 2019, 3D seismic data acquired in the previous year was processed and interpreted. Also, more 3D seismic was acquired over the north-western part of the area. A feasibility study was completed for development of the Bajerze and Tuchola natural gas fields, based on a power generation project. Preparatory work was being carried out prior to development of the fields and a contractor was selected to prepare design and legal documentation.

In the course of the operations in the Lublin Oil Province under the Karbon Project, based on analyses made with a view to optimising the project portfolio, a decision was made to relinquish the Lublin licence – the last one held under the Karbon Project.

Exploration and production projects of the ORLEN Group in Poland

Infografika-Orlen-2019 (S)_Mapa Polski-32 Infografika-Orlen-2019 (S)_Mapa Polski-32

Source: Own preparation.

Operations in Canada

The ORLEN Group is engaged in upstream operations in Canada through its subsidiary – ORLEN Upstream Canada Ltd. (“OUC”). Its 2019 capex programme focused primarily on the key areas of Ferrier and Kakwa in the Province of Alberta.

Within the Ferrier area, drilling of 12 wells (9.6 net) began. Additionally, hydraulic fracturing was performed on 12 wells (9.2 net), which were subsequently brought on stream. By the end of the year, two of the new wells were ranked as the top producers on the Cardium formation in the Province of Alberta.

Within the Kakwa area, drilling of seven wells (6.0 net) began.In addition, hydraulic fracturing was performed on eight wells (6.8 net), which were later brought on stream. The Kakwa area was recognised in Scotiabank’s reputable ranking as the best oil basin in Canada and the second best in North America in terms of PIR (the profit to investment ratio).

Within the Lochend area, drilling of two wells (1.0 net) commenced, followed by fracturing operations.

Production and transmission infrastructure was being constructed and upgraded within the key areas of operations to enable cost synergies and improve the project economics.

In 2019, the average output was 17,200 boe/d, of which 49% were liquid hydrocarbons (crude oil and NGL, including condensate).

Good reservoir properties of the assets and their location in a well-surveyed area minimise the operational risks of the projects. The Canadian OFS (oilfield services) market offers good access to comprehensive drilling and well services. The stable tax regime and measures aimed at reducing the overall tax burden combined with a friendly regulatory environment support efficient operations. On the other hand though, the oversupplied local market is facing infrastructure constraints, which at times adversely affect the Canadian hydrocarbon prices. Gradual elimination of pipeline capacity constraints and step-by-step expansion into new sales markets are expected within the next few years.

Seeking to achieve operational synergies and focus on the most profitable areas, ORLEN Upstream Canada is keeping a watchful eye on the local market. On January 3rd 2019, it closed the sale of its Pouce Coupe asset. The area producing mainly natural gas, being of secondary importance to ORLEN Upstream Canada, was sold with the proceeds used to partly finance the 2019 capex on much more profitable areas. Moreover, in December 2019, OUC successfully closed an asset exchange transaction within its key Ferrier area, with a view to strategic asset consolidation and addition of new drilling sites.

ORLEN Upstream Canada also holds minor exploration and production assets in New Brunswick, and a 2.3% interest in Pieridae Energy – an integrated company developing an LNG export terminal in Nova Scotia. To date, the process of obtaining administrative, legal, environmental and construction permits has been completed. In 2019, Pieridae Energy acquired upstream and midstream assets which will secure future production and transmission of natural gas volumes from Western Canada, necessary for the launch of the first terminal module. Should the final investment decision be made, the operational start of the project is currently expected in late 2024 or early 2025.

Assets in Canada

Infografika-Orlen-2019 (S)-33 Infografika-Orlen-2019 (S)-33

Source: Own preparation.

Sales volume of the Upstream segment

The ORLEN Group sales volume in the Upstream segment [thousand tonnes]

Sale 2019 2018 change %
Value Volumen Value Volumen
1 2 3 4 5 6=(2-4)/4 7=(3-5)/5
Crude oil 126 96 95 77 33% 25%
Natural gas 163 441 168 456 (3%) (3%)
Other1) 319 199 342 195 (7%) 2%
Total 608 736 605 728 0% 1%
1 Other: in volume terms consists mainly of NGL (Natural Gas Liquids), in value terms includes sale of NGL and revenues from sales of services of the segment.


Production and sale of hydrocarbons in Canada were conducted through ORLEN Upstream Canada Ltd., and in Poland – through FX Energy Poland, a subsidiary. In 2019, the combined volume of sales on the two markets was 736,000 tonnes, having gone up 1% year on year, mainly on higher hydrocarbon production in Canada.

Sales volume structure in the Upstream segment of the ORLEN Group

Search results