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10.06.2011 11:45

Japan's Mitsui Buys 9% in Polish Shale Gas Concession

Poland could have 5.3 trillion cubic meters of shale gas, equal to more than 300 years of the country's annual gas consumption, according to the US Department of Energy

AUTHOR: publics.bg

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Japanese trading house Mitsui & Co. Ltd. Thursday became the first Japanese company to enter into a European shale gas project by agreeing to acquire a 9% stake in Polish exploration concessions from subsidiaries of Marathon Oil Corp., Reuters reported.

Financial terms were not disclosed.

"Poland is considered to be one of the most attractive shale gas potential areas in Europe, where the development of shale gas by the major oil and gas companies is expected to accelerate," Mitsui said.

Poland could have 5.3 trillion cubic meters of shale gas, equal to more than 300 years of the country's annual gas consumption, according to the US Department of Energy. If it turns out to be economically viable to extract, shale gas would reduce Poland 's natural gas supply dependence on Russia 's OAO Gazprom.

The 10 concessions, encompassing 2.1 million acres (850,000 hectares), are located in a band spanning from north Poland to its eastern border, according to a map enclosed in Mitsui's statement.

In a separate statement, Marathon said it will hold a 51% working interest in these 10 concessions and serve as operator. Nexen Inc. (NXY), another partner, owns a 40% working interest in the concessions. The closing of the transaction is contingent on approval by Polish government authorities and Nexen, Mitsui said.

"Seismic and other geological analysis, as well as drilling of exploration wells to evaluate technical potential of the concessions will be carried out over the next five years", Mitsui said.