Chevron (CVX), the second-largest U.S. oil exploration firm, won a five-year license to explore for natural gas across 800 square kilometers in southeastern Poland. Poland's Environment Ministry approved the license on Friday, which will allow Chevron to carry out seismic studies and drilling activities up to 3,500 meters underground.
The exploration activity will take place near the city of Zamosc. Over the past two years, Poland has granted similar licenses to U.S. firms such as Exxon Mobil (XOM) and Marathon Oil (MRO).
On Thursday, Chevron said it will trim its 2010 budget by 5% to $21.6 billion, but that oil and gas exploration projects will remain a primary focus. The company recently announced plans for a major natural gas project on Australia's northwestern coast.
Chevron, a member of the Dow Jones Industrial Average, is up 5% year-to-date compared to a 20% run for the S&P 500.
Separately, Chevron also announced on Friday that it discovered a natural gas reserve in the southern Patukhali region of Bangladesh. The size of that reserve could be as large as 500 billion cubic feet, according to press reports. Chevron accounts for about 80% of the daily natural gas production by international oil firms in Bangladesh.