PRZEMYSLAW KROGULEC Deputy Managing Director, PGNiG Pakistan

EVOLVE: Share something about yourself, a brief overview of your professional journey?

Mr. Przemyslaw Krogulec: I completed my Masters from Stratigraphic-Prospecting Geology at the Department of Geology, University of Warsaw in 1986. In 1987 I started working for a Geological Company in Warsaw and next year in Ministry of Environment as a Geology Specialist. Year later joined the Research & Development Center of Geology. In 1993 I joined the Bureau of Geological Concessions as Chief Specialist; By 1995 I had completed Law & Administration Postgraduate Degree from the University of Warsaw and then in 1998 I joined the Polish Oil and Gas Company (PGNiG SA) – a leading, state-owned company, whose core business includes: exploration and production of natural gas and oil, their import, storage, sale and distribution and generation of electricity – serving various, focusing on geology and exploration positions and units over his career. In 2002 I also completed my Postgraduate Degree of Management at Warsaw School of Economics.
I joined the Exploration Department PGNiG in 2004 and within two years been promoted Foreign Operations Manager – 2006 to 2011. During this time I served PGNiG as Managing Director of Tripoli, Libya Branch (2008) and as Director of Algierian Branch in Algeria (2009 – 2010) Since 2012 I had worked as Exploration Advisor in E&P Branch of PGNiG SA then in 2014 I became the Chairman of Operating Committee on Kirthar Block in Pakistan. Due to enormous and versatile exposure I was appointed for management role and posted in Pakistan on May 2016 and started working as Deputy Managing Director. In this role I am working to enhance the contribution of PGNiG in development of Pakistan in Oil & Gas Sector.

EVOLVE: Please introduce PGNiG to our readers and the current activities that are being undertaken here, in Pakistan?

Mr. Przemyslaw Krogulec: PolskieGrnictwoNaftoweiGazownictwo SA is the leader in the Polish natural gas market. It is a listed company operating in exploration for and production of natural gas and crude oil. Through its key companies, PGNiG is also active in the area of import, storage, sale and distribution of gas and liquid fuels, as well as heat and electricity generation.
PGNiG SA holds equity interests in some 30 subsidiaries, including providers of specialist geophysical, drilling and well services, highly valued on international markets.The national gas system is complete with gas fuel storage facilities, used to cover seasonal and daily shortages of gas fuel.
The Company has branches and representative offices in Russia, Pakistan, Belarus and Ukraine. It is the sole owner of PGNiG Upstream Norway AS, engaged in upstream activities on the Norwegian Continental Shelf and the Norwegian Sea; POGC Libya BV, conducting hydrocarbon exploration operations in the Murzuq Basin in Libya; PGNiG Supply & Trading GmbH in Munich, which trades in gas; and PGNiG Finance AB in Stockholm, incorporated for the purpose of issuing eurobonds on the European market. PGNiG, operates in Pakistan as a branch office of PGNiG Group Poland, which has a majority shareholding of the Polish Government.

 

EVOLVE: Since how long PGNiG is in Pakistan and in which areas are you working? Moreover what is the scope of your activity in Pakistan?

Mr. Przemyslaw Krogulec: PGNiG began its operations in Pakistan in May 1997 and has been conducting petroleum exploration and production activities as an Operator since then. Before acquiring the current Kirthar Concession (Block No. 2667-7), PGNiG operated and carried out exploration activities in four other Concessions namely Khanpur West, Sabzal, Mekhtar and Sabzal South. PGNiG also held a 40% Working Interest in an exploration block in Nawabshah, Sindh as a Non-Operator. PGNiG acquired the Kirthar Block, located in District Dadu (Sindh), as an Operator in 2005 and Pakistan Petroleum Limited (PPL) farmed-in the Block as a Joint Venture Partner in 2006.
As part of the exploration plan in the Kirthar Block, PGNiG discovered the Rehman Gas Field in 2009 and started extended well test (EWT) production from it in 2013. This was the first-ever gas produced from a Tight Gas reservoir in Pakistan. The EWT phase for Rehman Gas Field was successfully concluded in August, 2015 whereby commerciality of the field

PGNiG
has invested more than US$150 million in Pakistan including construction of over 50 km of gas transport pipelines and the Rehman Production Facility. The current daily production from RPF stands at ~ 30mmscfd from five producing wells which is planned to be increased up to 100 mmscfd with full field development

was declared which has been approved by the Government of Pakistan and its Development and Production Lease has been granted for a period of 25 years. PGNiG continues to develop the Rehman Gas Field in accordance with its approved development plan and has since drilled three more development wells in the field thus increasing its contribution to the national gas supplies from indigenous sources.
In 2015, PGNiG discovered the Rizq Gas Field which was the second Tight Gas Field in the Kirthar Block and commissioned the Rehman Production Facility (RPF) with a capability of processing up to 40 million standard cubic feet of gas per day (mmscfd) to process the gas produced from both Rehman and Rizq Gas Fields. The facility was inaugurated by the Honorable Minister of Petroleum & Natural Resources Mr. Shahid Khaqan Abbasi on November 17th, 2015.
PGNiG more than doubled its production from the Kirthar Block when gas from Rizq Gas Field was added to the national grid in November 2016 which helped to reduce the increasing demand-supply gap for natural gas in the country. Another wave of four more wells is planned to be drilled in 2017 and 2018 which includes two more development wells on the mature Rehman Gas Field, an appraisal well on the new Rizq Gas Field in order to appraise it and another exploratory well to test a potential prospect in the northern side of the block. This expansion will continue beyond 2018 with increased exploration and development efforts in the Kirthar Block to comprehensively exploit the potential hydrocarbon reserves in the area.
PGNiG has thus far invested more than US$150 million in Pakistan including construction of over 50 km of gas transport pipelines and the Rehman Production Facility. The current daily production from RPF stands at ~ 30mmscfd from five producing wells which is planned to be increased up to 100 mmscfd with full field development. This increase in production will be accompanied by a corresponding capacity enhancement of the gas processing facility and improving its processing capabilities to widen the specification of produced gas that can be processed at the facility.

Moreover, this increase in production would require the use of advanced technologies (horizontal wells, multiple transverse hydraulic fracturing, etc) for which an investment of more than US$ 300 million will be made. In addition, PGNiG is in active pursuit to increase its footprint in the Pakistan upstream oil and gas sector and is also interested to develop the shale gas deposits in the country. PGNiG trusts the investment climate in Pakistan and is committed to contribute to its energy security.

Company has so far invested more than 150 million dollars in Pakistan, adding that current daily production from the Rehman field stood at 30 to 35 mmscfd from four producing wells, which would be increased up to 100 mmscfd gas with full field development.
This increase in production requires advanced technologies (horizontal wells, multiple transverse hydraulic fracturing, etc) for which an investment of more than $ 300 million would be made.

 

EVOLVE: What have been your main priorities since you took up the role?

Mr. Przemyslaw Krogulec: To increase the companys profile in terms of exploration and production in the existing block and also to acquire more prospective blocks to contribute in Pakistan energy needs. Besides financial and business aspects social and economic wellbeing of the communities with whom we work has been also our priority. We cater for all legitimates demands and requirements of the localscommunities through CSR activities and social welfare.

EVOLVE: What is the strategic importance of PGNiG, generally for Asia and especially for Pakistan?

Mr. Przemyslaw Krogulec: The PGNiG Group strives to become an increasingly more modern organization operating as a logically streamlined and optimized capital group, managed by objectives and project-oriented. One of the Groups key objectives in the upstream business is to increase its documented hydrocarbon reserves in Pakistan through acquisitions of new deposits and new E&P licenses. This will add significant contribution to Pakistans growing energy needs. Following factors make us a solid strategic partner as;

  • We are a trustworthy supplier of energy for households and businesses.
  • We are a responsible and effective provider of innovative energy solutions.

EVOLVE: Where do you see your competition and what have been the key managerial actions you have taken to address these business challenges?

Mr. Przemyslaw Krogulec: The sudden dip in oil prices since last couple of years put a lot of pressure on oil and gas industry globally resulting in uncertainty and disengagement of workforce. We tried to keep our employees engaged and motivated with our aggressive strategy with the passion to grow. We kept our leadership visible with open communication and empowered our employees with ownership. Besides, globally; If I talk about local challenges; we have the challenges in operating in the most versatile community regime in Pakistan but managed this challenge with proactive stake holder management and aligning objectives of all stakeholders to the organizational strategy.

EVOLVE: What are the important benchmarks if kept in a right direction can help any company climb ladders of success?

Mr. Przemyslaw Krogulec: I believe corporate values and organizational culture coupled with strategic leadership focus having diverse, empowered & happy team onboard is vital for business success. Moreover keeping focus on organizational goals & committed with them, extending respect to local and moral value of locals employees and communities also play a significant role. I am a firm believer of spreading positive energy around us to achieve organizational oneness.

EVOLVE: Any message for the readers of EVOLVE Publication?

Mr. Przemyslaw Krogulec: I am very excited to be in Pakistan and through Evolve I want to share my message to all its readers that Keep-up the good work and create a compassionate and supportive environment for the foreign investor to work in for the better future of Pakistan as this country has a lot of potential with respect to talent and natural resources.