PGNiG gas giant takes over Ukrainian peer

Paweł Majewski, the company’s president, said that they had plans to drill a well and carry out further tests in the area in the second half of 2022. Marcin Bielecki/PAP

Polish Oil and Gas Company (PGNiG) has bought majority stake in a Ukrainian company holding a gas exploration licence for an area bordering Poland.

Under the deal, signed on Monday, PGNiG bought 85-percent of the shares in Karpatgazvydobuvannia from ERU Management Services.

ERU was previously the sole owner of Karpatgazvydobuvannya, which has a special subsoil use permit for the development land in the Lviv region.

According to PGNiG, the results of the geophysical and geological tests taken so far in the area are promising.

Paweł Majewski, the company’s president, said that they had plans to drill a well and carry out further tests in the area in the second half of 2022.

"If the results of the analyses are confirmed and we find gas, production will start in 2023," he said.

Majewski added that the area covers over 200 square kilometres and is a geological continuation of the Przemysl field in eastern Poland, which has been exploited for 60 years.

ERU has been a long-term partner of PGNiG on the Ukrainian market to whom the Polish concern sells gas.