You are here

Exxon cancels Polish shale projects

US energy giant has pulled out of exploring two wells because they will not produce enough natural gas to be commercially viable

The Polish government in March said shale-gas reserves may be lower than estimated, and drilling a well costs almost three times as much as in the US

Exxon Mobil has decided not to go ahead with its shale gas exploration projects in Poland because its test wells failed to produce commercial quantities of gas, daily Gazeta Wyborcza reported in its weekend edition.

The paper quoted a spokesman for the US company's Polish arm as saying that Exxon made the decision after testing two of its wells in Poland, which is being closely watched as a potential of natural gas from shale.

The spokesman was not immediately available to comment further.

Exxon, which holds six exploration licenses in Poland, said in January it would evaluate its options after the unsuccessful tests.

A government report in March slashed estimates of Poland's shale gas reserves to 346 billion to 768 billion cubic meters, or about one-tenth of previous estimates, denting hopes for an energy source that could play a key role in weaning Europe off Russian gas.

Other foreign players seeking shale gas in Poland, the EU’s largest Eastern member, include Chevron and Marathon.