Naftogaz group 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.

"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," the group said in a press release.

Naftogaz said 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.

"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," Chief Operating Officer of the Naftogaz Group Otto Waterlander said.

"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," Vice President of the Management Board of PGNiG SA, Chief Operating Officer Robert Perkowski said.