Polish largest oil and gas company plans to produce gas in Ukraine's Lviv
Topics: POLISH OIL GAS COMPANY UKRAINE LVIV
“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,” said Piotr Woźniak, President of the Management Board of PGNiG SA.
“We are proud to announce with PGNiG this important step in the development of the Ukrainian hydrocarbon exploration and production sector. 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,” said Dale W. Perry, Managing Partner at ERU Management Services LLC.
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 have good reasons to believe the region has strong production potential, similar to Przemyśl deposit which is the biggest natural gas deposit in Poland,” Mr Woźniak explained. “Our experience and know-how gained from operating the field for over 60 years will certainly be of use in Ukraine.” ■