Purchase of Ukrainian gas extraction company by Poland

Tuesday, August 31, 2021
Purchase of Ukrainian gas extraction company by Poland

The Polish company "Polskie Górnictwo Naftowe i Gazownictwo SA" has bought the Ukrainian company "Karpatyhazvydobuvannya". It owns a license for gas extraction at the Biblivskyy area, located in western Ukraine near the Polish border

The agreement signed on August 30 provides for the Polish side to acquire an 85% stake in the US-based ERU Management Services. The agreement was preceded by the relevant permits from the Polish competition and consumer protection authority and the Antimonopoly Committee of Ukraine.

In terms of geology, this area is analogous to Peremyshl, the largest natural gas field in Poland, which PGNiG has been exploiting for more than 60 years. Its attractiveness and potential were confirmed by PGNiG's previous analysis of geological and geophysical data, the company said.

Drilling of the well is scheduled for the second half of 2022, followed by reservoir tests. If test results are positive, the well will be connected to the Ukrainian gas network and put into operation in 2023.

The owners of Karpatgazvydobuvannya also plan to conduct additional geophysical studies of the license area to help design further wells.

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