Poland’s state-owned oil and gas company PGNiG bought a majority stake in a Ukrainian company holding a gas exploration licence for an area bordering Poland. Under the deal, PGNiG bought a controlling interest in Karpatgazvydobuvannia from ERU Management Services.
Energy Resources of Ukraine (ERU), was previously the sole owner of Karpatgazvydobuvannya, which holds a licence to explore and produce hydrocarbons in the Lviv Oblast region close to the Polish border. The area covers over 200 square kilometres and is a geological continuation of the Przemysl field in Eastern Poland, which has been exploited for 60 years.
Under the purchase agreement signed today, PGNiG acquires 85 per cent of Karpatgazvydobuvannia shares, says the company’s statement. ERU has been a long-term partner of PGNiG on the Ukrainian market to whom the Polish concern sells gas.
“For the past five years, we have been actively trading natural gas in Ukraine,” said Paweł Majewski, President of the PGNiG Management Board, recalling that in the past years PGNiG launched gas sales to the Ukrainian market and gained access to the Ukrainian gas transmission network and storage facilities.
“The agreement signed today marks a step in PGNiG’s strategy to expand its operations on foreign markets, being a part of the company’s efforts to diversify its sources and directions of natural gas supply. We believe all these efforts will help strengthen the energy security no only for Poland and Ukraine, but also for all countries of the Three Seas Initiative,” underlined Mr Majewksi.
According to PGNiG, the results of the geophysical and geological tests taken so far in the area are promising. PGNiG plans to drill a well and carry out further tests in the area in the second half of 2022. As Mr Majewksi noted if the results of the analyses are confirmed and they find gas, production will start in 2023.