Ukrgazvydobuvannya in final stages of hydrocarbon exploration negotiations with Czech MND

MOSCOW. Aug 18 (Interfax) - JSC Ukrgazvydobuvannya (UGV) and the Czech Republic's MND Group, which is part of Karel Komarek's KKCG Group, are in the final stages of negotiations on hydrocarbon exploration in western Ukraine, Maxim Vityk, director of exploration and development at UGV, said.

"We are negotiating with the Czech company MND, we are entering the home strait," Ukrainian media quoted him as saying at the Ukrainian Gas Open 2023 forum on Thursday.

He did not specify the details and form of potential cooperation between the companies.

UGV and MND Group signed a memorandum of understanding in October last year to work together to tap the potential of under-explored blocks in western Ukraine.

MND is carrying out exploration and production at five oil and gas fields in Ukraine in partnership with Zinovy Kozitsky's Zakhidnadraservice group of companies. UGV and MND plan to pool their knowledge of western of Ukraine to unlock the potential of areas yet to be explored.

Vityk also said that UGV had carried out 3D seismic surveys and was finishing drilling a second well at the Berestyansky oil and gas block, for which the company entered into a production sharing agreement at the end of 2020.

"We've drilled one well at the Berestyansky block and found gas. We are drilling the second one now," he said.

Vityk also said that the company was preparing to carry out 3D seismic at the Buzivsky block, and that work could begin this year.

The Ukrainian government at the end of 2020 approved draft production sharing agreements with the state-owned UGV - for the Berestyansky, Buzivsky, Balakleisky and Ivanivsky blocks.

UGV aims to boost its own gas production by 1 billion cubic meters to 13.5 bcm in 2023. Production fell 3% to 12.5 bcm in 2022.

Naftogaz owns 100% of UGV.