Poland’s leading energy company, Orlen, has made a significant discovery in the west of the country, uncovering an oil field estimated to hold 100,000 tonnes of crude. The field, located near the town of Rzeczyca in the Lubuskie region, could yield 16,500 tonnes annually. This discovery marks one of the largest oil finds in Poland in recent decades, providing a welcome boost to domestic production.
The announcement, made on September 11, was hailed by Orlen’s CEO Ireneusz Fąfara, who emphasized the importance of the discovery in revitalizing Poland’s oil sector. “This is the largest oil find in the last couple of decades,” Fąfara said, noting the potential for further finds in the surrounding area. According to Orlen, another 500,000 tonnes of oil could lie in nearby deposits.
The drilling operation, conducted by Orlen subsidiary Exalo Drilling, lasted 63 days and reached a depth of 2,750 meters. The project, which began in June, represents a major investment in Poland’s energy future at a time when domestic production has been steadily declining. While Orlen currently produces 823,000 tonnes of oil annually, this new field is expected to increase the company’s output by around 2%.
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Impact on Lubuskie and Local Communities
The oil find is expected to have a positive economic impact on the Lubuskie region, where much of Poland’s existing oil production is concentrated. Local governments stand to benefit significantly, with up to 90% of operating fees from oil and gas extraction funneled back into the area. If production proceeds as planned, this could mean an additional 1 million PLN (approximately €250,000) flowing into local budgets annually.
This discovery comes at a crucial time for Poland, which has been striving to reduce its reliance on foreign oil imports. Following Russia’s invasion of Ukraine, Orlen has cut off its purchases of Russian oil, instead sourcing 45% of its imports from Saudi Arabia as of 2023. The shift has been part of a broader national effort to secure more reliable and ethically-sourced energy supplies.
Challenges Amid Global Market Volatility
Despite the positive news for Orlen, the company’s share price has not seen a significant boost. On the day of the announcement, shares were down 0.1%, in line with broader trends in global oil markets. Over the past week, Orlen’s stock has dropped by 5.8%, largely due to falling oil prices driven by decreased demand from China and production cuts by Saudi Arabia.
However, Orlen’s leadership remains optimistic about the long-term potential of the newly discovered oil field. Wiesław Prugar, an Orlen board member overseeing upstream operations, highlighted the company’s confidence in uncovering more substantial reserves in the region. “We are very likely to make further big discoveries,” Prugar said.
Historical Context and Future Prospects
Poland was once the largest oil producer in the 19th century, but its domestic production has dwindled significantly in recent years. This decline has forced Orlen to seek new opportunities both within Poland and abroad. Since 2018, the company has been acquiring drilling rights in the Norwegian North Sea, further diversifying its oil sources.
With the new discovery, Orlen aims to strengthen its position as a leader in Poland’s energy sector, leveraging both domestic resources and international investments. The company’s exploration in the Lubuskie region offers hope for reviving the country’s oil production capabilities, potentially reducing dependence on imports and benefiting the local economy.
