Please ensure Javascript is enabled for purposes of website accessibility

Chevron, Polish Firm to Explore for Shale Gas

By Associated Press – Mar 31, 2014 at 12:04PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Chevron said successful exploration could result in the "establishment of a joint company in which each holds a 50 percent interest."

WARSAW, Poland (AP) -- Poland's gas giant, PGNiG, and Chevron on Monday agreed to jointly hunt for shale gas in southwestern Poland in a move to speed up the exploration amid tension with major gas supplier, Russia.

Dependent on Russian imports, Poland wants to diversify its energy sources and is placing hopes in its reportedly sizable shale gas deposits. Warsaw is also urging the European Union to develop a joint energy system and decrease reliance on Russia.

European leaders are talking about possible economic sanctions against Moscow over its political conflict with Ukraine. Russia recently said it was raising gas prices for Ukraine, which also transits the fuel to central and western Europe.

"The experience of recent weeks shows that Europe must show more solidarity in the energy sector," Poland's Prime Minister Donald Tusk said over the weekend.

Tusk called for greater investment in Europe's gas network, on joint purchase policies and on a greater role in the energy mix for coal, which is Poland's top energy source, and shale gas, which is unpopular in Europe.

On Monday, PGNiG spokeswoman Dorota Gajewska said PGNiG and Chevron will jointly assess gas deposits in their areas of operation and will exchange geological information, which is vital for choosing exploration sites. Such information is scarce in Poland, due to the small number of exploratory wells. There are some 50 now, while hundreds are needed to offer a reliable assessment.

Chevron said in a statement that successful exploration could result in the "establishment of a joint company in which each holds a 50 percent interest."

The companies say cooperation will help cut costs and risks.

Chevron is currently assessing results from its four exploratory wells.

In Europe, only Poland and Britain are actively exploring for shale gas.


The Motley Fool recommends Chevron. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.