PGNiG signed a letter of intent regarding cooperation on exploring the Sumar oil deposit in Iran. The company is to carry out an analysis of geological and formation data of the Sumar field.

PGNiG declined to give further details about the deal, but National Iranian Oil Company’s Deputy Chief for Development and Engineering Affairs Gholam-Reza Manouchehri told SHANA Nov. 5 that "the Polish party will have a six-month deadline to complete the study on the field and provide the NIOC with the result."Manouchehri went on to say that a final decision on development of the field will be made once the studies are complete and the main strategy of the NIOC is to offer the project for development through a tender.

Sumar field, located in the operation area of Iran Central Oil Fields Company, is a brown field with 441 million barrels of oil in-situ and 500 barrels per day production from one well. The field was studied in a 2D seismic exploration. The API degree of the field’s reserve is 44. The field was discovered in 2006. Production on it started in 2012.

As for the low oil price and its effect on investments in upstream sector, PGNiG told Trend that it usually takes a few years from the moment the company starts exploration until the production starts, and it is hardly possible to predict oil prices in that timeframe.

"We believe that good projects defend themselves no matter the current oil price. That is why we are focusing on good projects in prospective areas," said PGNiG.

PGNiG sealed a preliminary deal with Iran to develop Lavan gas field, worth $7 billion, but Iran announced in 2011 that the company was excluded from the project due to missing several deadlines. The reserves of Lavan field are estimated to be around 280 billion cubic meters.

Polish Foreign Minister Witold Waszczykowski told Trend in June that "due to the scope of activities and financial capabilities of Polish oil and gas companies, we do not aim at full-scale competition with major global players in terms of big investment contracts, which are a priority for the Iranian Ministry of Petroleum, but still there is a big field of cooperation in the framework of some smaller contracts, mainly in services sector: geophysical assessment and exploration, drilling, on-surface infrastructure construction and maintenance."

He added that PGNiG's sister companies have significant experience in executing such international contracts and Iran could be their partner.

"The talks are ongoing and we are optimistic about their progress," said Waszczykowski.