9 Dec 2019 15:37

Poland's PGNIG, Ukraine's ERU to start gas exploration, production in Lviv region - contract

KYIV. Dec 9 (Interfax) - Poland's PGNiG SA and Ukraine's ERU Group have signed a contract on exploration and production of natural gas in Lviv region, PGNIG said in a press release posted on its website.

"We are consistently pursuing our strategy to expand PGNiG's foreign operations. The agreement we have signed today 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," President of the Management Board of PGNiG SA Piotr Wozniak said.

The agreement between ERU and PGNiG provides for joint operations on a licence located in 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.

"Since we established a business relationship with our Polish partner four years ago, we have noticed a positive shift in the investment climate in Ukraine and we are ready to take advantage of it to jointly invest in and expand upstream operations. We consider it the first of the many opportunities the Ukrainian energy sector has to offer in the coming years," Managing Partner at ERU Management Services LLC Dale W. Perry said.

PGNiG is Poland's largest oil and gas company engaged in the development of gas and oil fields, production, storage and transportation of energy, as well as the construction and development of the oil and gas transportation network, gas export and import.

Energy Resources of Ukraine (ERU) is a group of companies with foreign investment, specializing in the implementation of projects in the Ukrainian energy sector. The ERU group belongs to Yaroslav Mudry and Perry. It is one of the largest private importers of natural gas. In July 2019, it was the first to import electric energy from Europe.