CMS advises on milestone upstream oil & gas project in the Baltic Sea
Central European Petroleum (CEP), a Canadian exploration and production company, has announced a significant discovery of oil and gas reserves in the 100% owned and operated Wolin East 1 well, located on Polish territory.
The Wolin East 1 oil discovery is estimated to contain 22m tonnes of recoverable crude oil and condensate, and 5bn cubic metres of commercial quality gas. The broader Wolin licence area is estimated to hold up to 33m tonnes of oil and 27bn cubic metres of gas. The resources found in Wolin East constitute the largest conventional hydrocarbon field yet discovered in Poland, and one of the largest conventional oil discoveries in Europe in the past decade. The Wolin East project (the project) is expected to become a milestone in the development of Poland’s upstream sector and a contributor to the country’s energy security.
CMS has been advising CEP for nearly a decade, supporting the client in all legal aspects of project development, including licensing and environmental permitting, securing legal titles for onshore and offshore operations, drafting project agreements, as well as regulatory, procurement, corporate and tax advice.
The project includes both onshore and offshore exploration in areas that are highly sensitive from environmental, military and navigational perspectives. CMS’s work has included securing and amending exploration and appraisal licences, preparing geological documentation for approval by the Ministry of Climate and the Environment, obtaining environmental decisions, and advising on tender procedures, related documentation and contracts with drilling service providers. CMS has also supported CEP in its engagement with public authorities, local stakeholders and state-owned enterprises.
The project is progressing in stages: CEP has recently completed the Wolin East-1 appraisal well, which confirmed the presence of hydrocarbon reserves, and is now moving towards further well planning and final-stage negotiations with a prospective equity partner.
The cross-practice CMS team advising on the project is led by Łukasz Szatkowski, supported by Wojciech Szopiński, both from the firm’s Energy & Infrastructure practice. Other key team members include Paweł Ura (Energy & Infrastructure); Karolina Kosińska (Corporate and M&A); and Piotr Nowicki and Maciej Brezdeń (Tax). Tomasz Minkiewicz, a long-standing CMS partner was also involved in the matter.
CMS has Poland’s leading Energy & Infrastructure practice and the firm continues to advise on some of the largest and most complex investment projects in the RES, nuclear and energy storage sectors. The team supports clients at every stage of project development, including M&A transactions and investment structuring, comprehensive regulatory advice, and contracting and operational issues.
CMS has continuously maintained its leading position in the Chambers & Partners, Legal 500 and IFLR1000 international rankings. In the CEE region, CMS is Band 1 ranked by Chambers & Partners for Projects and Energy, the highest level of recommendation.
