ConocoPhillips Shelves Polish Shale Gas Investments

By Patryk Wasilewski

WARSAW--ConocoPhillips (COP) has shelved its shale gas exploration plans in Poland amid unsatisfactory production levels, the company said Friday.

The company joins a long list of oil majors, including Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), Marathon Oil Corp. (MRO) and Total SA (TOT), that have abandoned their shale gas plans in central Europe's largest economy.

The boom for unconventional sources of oil and gas has recently slowed due to lower oil and natural gas prices on the global market.

In a statement, ConocoPhillips said its subsidiary, Lane Energy, failed to reach production-level flows from its gas wells located in the north of the country.

Poland had hoped that domestic shale gas production would secure its energy security by allowing it to break its dependence on gas imports from Russia. It imports about 60% of its gas from Russia, with the remaining demand met by domestic production and imports from Western Europe.

The Polish government originally hoped the first commercial shale gas production could be achieved in 2014, but now only state-controlled companies PGNiG (PGN.WA) and PKN Orlen (PKN.WA) are drilling.

Write to Patryk Wasilewski at [e-mail]

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