Polish, Ukrainian gas giants to cooperate

Polish oil and gas company PGNiG and Ukraine’s Naftogaz Group have signed a letter of intent on cooperation in hydrocarbon exploitation and production in Ukraine.

"Ukraine, which has Europe's largest natural gas resources at its disposal, can be an attractive development site for PGNiG," the company wrote in a press release on Tuesday.

PGNiG said it is interested in operations in western Ukraine since it borders an area where the company has been extracting gas for years.

"The available data show that the region's deposits have huge potential," PGNiG deputy CEO Robert Perkowski was quoted as saying. "Our Ukrainian partner is experienced and has precious geological data at its disposal."

"That is why the potential cooperation of the two companies can be effectively translated into a growth in natural gas production in western Ukraine," he continued.

He added that cooperation between the two companies could enhance energy security in Central Europe.

Naftogaz is a Ukrainian state oil and gas company. In 2020, it produced 13.5 billion cubic metres of natural gas, or 73 percent of total Ukrainian production.