The field, which Orlen boss Ireneusz Fąfara hailed as “the largest found in the last couple of decades,” could yield 16,500 tonnes per year, according to the company’s estimates.
By comparison, in 2023 Orlen calculated that the total annual oil production of its upstream companies was 823,000 tonnes. So bringing the new production online would add around 2% to the company’s drilling totals.
“The drilling indicates that large additional quantities of crude are contained in the surrounding geological structures,” said Wiesław Prugar, the member of the Orlen board responsible for upstream issues.
“We are very likely to make further big discoveries,” he added, with Orlen suggesting that a further 500,000 tonnes of oil could lie in the surrounding area.
The news comes at a time when domestic production of oil in Poland, the largest producer of the hydrocarbon in the 19th century, has been drying up, and Orlen’s subsidiaries have been buying drilling rights in Norwegian North Sea waters since 2018.
The country imported 45% of the oil it consumed in 2023 from Saudi Arabia, according to earlier estimates, replacing much of the oil that was previously sourced in Russia.
In announcing the new find, Fąfara said the project would benefit the Lubuskie region in western Poland, where the discovery was made and most of Poland’s domestic production now comes from.
“Local governments, which receive as much as 90% of the operating fee for oil and gas extraction, could see an extra 1 million PLN [around €250,000] flowing into their budgets a year if all goes well,” Orlen’s CEO said.
Exploratory drilling near the town of Rzeczyca, close to the western city of Zielona Góra, started in June and lasted 63 days, according to Exalo Drilling, which is part of the Orlen Group. The drilling shaft reached down 2,750 meters.
Orlen’s share price was down slightly under 0.1% on the day despite the announcement of the new find.
This week, which has been dominated by tumbling oil prices on global markets despite production cuts by Saudi Arabia and amid falling demand in China, has seen Orlen’s share price fall over 5.8%.
