Germany Eyes Share in Poland's Baltic Energy Discovery

From Protest to Profit Talks
Earlier this year, test drilling near the Wolin East-1 site was completed following a 70-day operation conducted by the Canadian company Central European Petroleum (CEP). Initially, the German state of Mecklenburg–Western Pomerania protested against the drilling. Its environment minister, Till Backhaus, raised alarms over potential environmental risks and criticized Poland for issuing the exploration license back in 2017.

Despite German objections, the drilling progressed. By July, the findings had exceeded expectations. CEP announced that the site holds more than 22 million tons of crude oil and condensate, along with 5 billion cubic meters of commercially usable gas.

This adds to the earlier discovery of over 16 billion cubic meters of gas. CEP CEO Rolf G. Skaar described it as a "historic moment" for both the company and Poland's energy sector. After this announcement, the German protests noticeably stopped.

Germany Now Seeks a Share
Following the announcement of the discovery's scale, attention in Germany shifted. A leading German publication pointed out that some of the oil and gas reserves might be located partially on German territory. This led to the question: "Will Poland have to share the revenues?"

Citing a similar case on the German-Dutch border, where profits were shared under a bilateral agreement, German authorities argue that joint ownership of cross-border reserves should come with joint benefits. The Ministry of Economy, Infrastructure, Tourism, and Labor of Mecklenburg–Western Pomerania has also commented on the matter, fueling the debate.

However, the issue of revenue sharing may not be simple. Legal experts suggest that any agreement would likely depend on how European Union regulations are interpreted. Until then, what began as a technical dispute over drilling has now become a broader political and economic debate between neighboring countries.