01.06.2010 Following an analysis of business considerations, the Management Board of PGNiG SA resolved not to submit a bid for ENERGA shares
The above decision has been made in connection with certain strategic projects pursued by PGNiG SA, which need to be completed by 2015 and which require substantial capital expenditure. Top priorities include the completion of the projects involving construction of new and expansion of the existing underground gas storage facilities, as well as the construction of the LMG natural gas and crude oil mine. In addition to their vital role in ensuring a much needed improvement of Poland's energy security, the projects are also bound to significantly enhance the Company's value.
Equally important is the implementation of PGNIG SA's Development Strategy with respect to an increase in natural gas and crude oil production from both domestic and foreign fields. For this reason, the Company has been closely watching the developments in the upstream market and is intent to step up its activities in that segment in Poland and abroad, mainly on the Norwegian Continental Shelf and in Northern Africa. To be able to meet those plans, the Company must maintain adequate financial reserves with which to finance potential acquisitions.
At the same time, PGNiG SA wishes to confirm the assumptions underlying its Strategy whereby the PGNiG Group is to be transformed into a diversified energy conglomerate. This objective will be pursued through involvement in selected projects, either individually or in cooperation with partners from the power sector. PGNiG will focus on the construction and operation of high-efficiency CHP and gas powered generation assets, thereby stimulating the development of the Polish gas market. A case in point is the project implemented jointly with the Tauron Group, involving the construction of a cutting-edge unit operating in the gas-steam cycle in Stalowa Wola, which is scheduled to be put into operation in mid 2014.