Talisman, Exxon to sell Polish shale gas licenses

12/3/2012

Talisman, Exxon to sell Polish shale gas licenses

WARSAW -- Talisman Energy and Exxon Mobil are in talks with PKN Orlen to sell their Polish shale gas exploration licenses.

Foreign and domestic companies are concerned about planned levels of taxation and the involvement of the state once the industry moves to the next phase and starts producing commercial volumes of shale gas in Poland. Exxon decided earlier this year to exit Poland after drilling just two wells, saying it didn't find enough oil or gas to justify additional drilling.

Poland would like to use its shale gas reserves to reduce its reliance on natural gas imported from Russia and build gas fired power plants to diversify away from coal as the primary source of its electricity. The government has encouraged state controlled firms, led by gas firm PGNiG and PKN Orlen, to carry out exploration drilling, mostly in Poland's north and east.

Dow Jones Newswires

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