Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) signed an investment agreement with Energy Resources of Ukraine (ERU) on a joint exploration and production project in Ukraine.
The agreement sets a general framework for cooperation and provides a schedule of further work on a project near the Polish border in Ukraine. The production potential of the license is supported by findings of geological surveys conducted by PGNiG, which show a correlation of its geological structures with Przemyśl, Poland’s largest natural gas field, PGNiG said in an Oct. 12 release.
To provide financial protection for the joint project, talks have been initiated with the US International Development Finance Corp. and Poland’s Export Credit Insurance Corp. (KUKE).
“The license is our first exploration prospect in Ukraine, located in a very promising geological zone, encompassing also the Przemyśl field. We have all required technology and equipment resources, and our employees have knowledge and expertise gained over 60 years of exploration and production operations in the Rzeszów region,” said Jerzy Kwieciński, president of the PGNiG management board.
Work is scheduled to begin in first-half 2021 after all necessary consents and permits have been secured.