PGNiG backs out of its Egyptian investment
January 30, 2014
Polish gas giant PGNiG confirmed media reports that it decided to withdraw from Egypt as chances of encountering significant hydrocarbon deposits were low, as well as due to political uncertainty company’s press office said.
"The decision of PGNiG to withdraw from Baharyia (decision not to prolong the concession) was made due to high risk of further exploration works and low chances of exploring significant accumulation of hydrocarbons," PGNiG said.
"The economic analysis carried out showed that potential oil deposits do not guarantee a positive financial result," the press office said. "The direct reason [behind the decision] were the negative results on exploration drillings made."
Moreover, persisting political instability in Egypt played a role, the company also said.