PGNiG plans capex of EUR 723 mm

Polish gas player PGNiG has set its capital expenditure budget at zlotys 3.5 bn (EUR 723 mm) for the year, with nearly half of that earmarked for exploration and production projects, deputy chief executive Radoslaw Dudzinski said.
The state-controlled group plans to invest between zlotys 1.43 bn and zlotys 1.45 bn on E&P projects in Poland and abroad, mainly in the North Sea area, Dudzinski told.

As part of a plan to lessen Poland's reliance on Russian gas, PGNiG has taken stakes in a number of exploration and production licences in Norway. The only production licence it has a stake in -- at the Skarv field -- is due on stream by the end of this year or early next year.
"We will spend some zlotys 650 mm on Skarv, depending on the zloty strength," Dudzinski said.

PGNiG plans to invest about zlotys 600 mm in domestic production and between 180 mm and zlotys 200 mm on other E&P projects.
Beside Skarv, PGNiG has also stakes of between 25 % and 30 % in two exploration licences off Norway, as well as stakes in licences in Egypt and Libya. According to its long-term strategy, PGNiG plans to spend up to zlotys 30 bn on capital expenditure by 2015.