Naftogaz and PGNiG to jointly search for gas in Western Ukraine

Naftogaz and Polish Oil and Gas Company (PGNiG) have signed a memorandum of understanding
The partners will jointly consider the possibility of putting together experience and resources to implement a number of projects, primarily in Western Ukraine, close to Polish border.

"Joint work of the Government and Naftogaz has resulted in obtaining strategic assets that allow us to confidently declare the greatest potential for hydrocarbons exploration among European countries. By attracting international partners, we intensify the rate of progress of unlocking Ukraine’s resource potential. PGNiG is a public company with high standards that has discovered and is successfully developing a number of fields in Europe. In particular, PGNiG has proven track-record of discoveries and efficient gas production in Poland, in the region bordering Ukrainian Carpathians. At the same time, it has already successfully accomplished projects on expanding its gas producing business to other countries, including strong position in Norway. I am confident that we will be able to achieve mutually beneficial synergy that will contribute to Naftogaz' strategic goal of driving gas production volumes to allow Ukraine achieve energy independence within the next 10 years," Chief Operating Officer of the Naftogaz Group Otto Waterlander said.

Naftogaz and PGNiG will primarily focus on exploring opportunities for joint exploration of greenfield areas in Western Ukraine, bordering Poland. In particular, the partners shall allow for cooperation in Berestyanska area, where Naftogaz signed a production sharing agreement with the government at the end of 2020.

"Ukraine, which has one of the largest gas reserves in Europe, offers a very attractive growth potential for upstream companies like PGNiG. We are particularly interested in gas production development in Western Ukraine. This region borders with our operations area in Poland, and our data confirms its potential. Naftogaz has been working there for many years and has considerable experience and valuable geological data. We are excited about the opportunity of joint development of Naftogaz’ greenfields in the region, including recently awarded Berestyanska block under PSA. However, we are also interested in joint study of the remaining open acreage in close proximity to Polish border. Such cooperation is beneficial for the development of both companies, as well as for strengthening the energy security of Eastern Europe,"
Robert Perkowski, Vice President of the Management Board of PGNiG SA, Chief Operating Officer said.

Recall that as part of its strategy approved in 2020, Naftogaz started implementing strategic projects to increase the resource base within the Black Sea shelf, Yuzivska area, the Carpathian region and new areas for which PSAs were concluded.

About Naftogaz

Naftogaz Group is a National Oil and Gas Company of Ukraine and one of the biggest players in the gas market of Central and Eastern Europe. The Group pursues development and exploration of oil and gas fields, drills wells, provides gas and oil transmission and storage and supplies natural gas to consumers.

In 2020, Naftogaz produced 13.45 bcm of sales gas, which is 73% of all gas produced in Ukraine.

About PGNiG

The PGNiG Group is the leader in the Polish gas market with 25,000 employees globally. It operates in exploration and production of natural gas and crude oil, international gas trading, sale and distribution of gas and liquid fuels, as well as heat and electricity generation. The PGNiG Group consists of over 30 companies including providers of specialist geophysical, drilling and well services that are highly valued on international markets. The Group’s parent company, PGNiG SA, is one of the largest companies listed at the Warsaw Stock Exchange.