Herus: PGNiG plans to invest $50 million in gas production in western Ukraine at the first stage

Chairman of the Verkhovna Rada Committee on Energy and Housing and Utilities Andrii Herus said that the Polish state oil and gas company PGNiG at the first stage plans to invest $50 million in gas production in western Ukraine as part of a partnership with the ERU group of companies, Interfax-Ukraine reports.

"At the first stage, it is planned to invest $50 million. And in the future, the volume of investments may reach up to $ 500 million," he wrote on his Facebook page after attending the 24th Gazterm gas conference in Poland.

In December 2019, PGNiG and the Ukrainian group of companies ERU signed an agreement on the exploration and production of natural gas in Lviv region. The agreement provides for the drilling at the initial stage of an exploration well up to 2,500 meters deep, and measures to design the location of other wells.

In May 2021, the Antimonopoly Committee of Ukraine allowed the Polish PGNiG to acquire over 50% in Karpatgazvydobuvannya LLC, which owns a special permit for the Biblivskaya oil and gas area.

Karpatygazvydobuvannya, in which the Polish PGNiG will acquire 85% from ЕRU Management Servises LLC (USA), plans to start drilling the first well in Biblivska oil and gas area (Lviv region) in the second half of 2022.

To recap, Ukraine and Poland may create a joint gas hub.

Tags: contracts, legislation, gas production, drilling, AMCU, Gerus, Gas market, investments, Ukraine, field, Poland, natural gas

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