PGNiG Gives $789MM Contract to Technip

WARSAW (Dow Jones Newswires), June 20, 2008

Polish natural gas monopoly Polskie Gornictwo Naftowe i Gazownictwo, or PGNiG, said Friday it awarded a 1.7 billion zloty ($788.9 million) contract to launch oil and gas output from its field in Poland to a consortium led by Italian unit of Technip SA (13170.FR) and local company PBG SA (PBG.WA).

Under the contract, the consortium, which also includes Thermo Design Engineering from Canada, will allow PGNiG to start mining oil and gas from its LMG field in Western Poland.

The consortium has 56 months to finalize the project which includes 14 oil and gas wells, several oil and gas pipelines and other infrastructure.

Proven reserves of oil in LMG field are 53.5 million barrels, while proven reserves of natural gas in the field total 5 billion cubic meters.

After the mine is in operation in 2013, PGNiG's oil output will increase by about 50% to 6.6 million barrels a year from the current 4.4 million barrels.

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