PGNiG has signed an agreement with ERU Management Services providing for joint gas exploration and production operations in the western part of Ukraine.
The agreement between ERU and PGNiG provides for joint operations on a licence located in the Lviv region, which is close to the Polish border. An exploration well will first be drilled to a depth of up to 2,500 metres, and geophysical surveys will be performed to select further well locations. Work will commence once all relevant approvals and permits have been secured.
“We are consistently pursuing our strategy to expand PGNiG’s foreign operations. The agreement we have signed will allow us to explore for natural gas in a very promising region. I am confident that our partnership with ERU will contribute to building the value of both companies,” said Piotr Woźniak, President of the Management Board of PGNiG SA.
“We have good reasons to believe the region has strong production potential, similar to Przemyśl deposit which is the biggest natural gas deposit in Poland,” Woźniak added.
PGNiG and ERU have been involved in exporting natural gas to Ukraine since 2016. The two companies have also supplied gas to the Ukrainian transmission and storage system operator Ukrtransgaz. In August 2019, PGNiG purchased a cargo of US LNG for ERU, which was regasified at the President Lech Kaczyński terminal and sold to Ukraine. Upstream is a new promising area of cooperation between the two companies.