Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) signed an agreement with ERU Management Services to acquire 85% of the shares of Karpatgazvydobuvannya LLC, the sole holder of the Byblivska license in Western Ukraine.
Karpatgazvydobuvannya holds a license to explore for and produce hydrocarbons in the western part of the Lviv Oblast, adjacent to the Polish border. The area is an analogue of Przemyśl, Poland’s largest natural gas field operated by PGNiG for more than 60 years, PGNiG said in a statement Aug. 30.
In accordance with the license work schedule agreed between the partners, preparations for spudding an exploration well are to be completed by end 2021. Drilling is scheduled for second-half 2022, followed by formation tests. If it delivers positive test results, the well will be connected to the Ukrainian gas network and brought onstream in 2023. Additional geophysical surveys of the license area are planned to help design additional wells, according to the statement.
“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,” said Paweł Majewski, president of the PGNiG management board.
Execution of the agreement was preceded by the receipt of relevant approvals from the Polish Competition and Consumer Protection Authority and its Ukrainian counterpart.