Poland’s Exalo Drilling signs memorandum of cooperation with Nadra Ukrayny

Gas valves, Ukraine
Source: DollarPhotoClub

Exalo Drilling, a subsidiary of the Polish state-owned exploration company PGNiG, announced yesterday the signing of a memorandum of cooperation with the Ukrainian company Nadra Ukrayny. As a part of the agreement, the companies will co-operate on the exploration, evaluation, and eventual exploitation of oil and gas in Ukraine.

The memorandum – which is reported to have been signed for a period of two-years – was signed by the chairman of Nadra Ukrainy, Yaroslav Klimovich, and the Polish company’s CEO Ryszard Jędrzejczak and Vice President of its board, Henryk Dytko.

“The memorandum provides for cooperation in the area of research, evaluation and possible joint participation in the development of oil and gas resources in Ukraine,” the Ukrainian company said in a statement.

“Also, the Ukrainian and Polish sides to the memorandum agreed to exchange, solely on the basis of confidentiality, geological, seismic, and research information on the development of certain fields.”

According to the company website, Nadra Ukrayny was established in 2000 by Decree of the President of Ukraine by consolidating thirteen geological and other specialist entities to create a single company that will realise “the State interests and fulfils joint investment projects in geological survey branch on the territory of Ukraine.”

The Polish company Exalo Drilling is one of the largest service and drilling companies in the drilling market in Central and Eastern Europe. Formed by combining five separate upstream companies, it currently boasts a fleet comprising more than 50 drilling and workover rigs of varying power, used to drill wells and perform all kinds of downhole work, as well as a wide range of tools and equipment to perform oilfield services.

The newly-agreed cooperation is certainly good news for Ukraine which has recently been abandoned by almost all of its foreign investors.

As recently as last week (16th February), the London-based oil and gas exploration company JKX Oil & Gas plc, launched legal proceedings against the government in Kiev, quoting “Ukraine’s treaty violations, including Ukraine’s failure to treat JKX’s investments in a ‘fair and equitable’ manner and failing to comply with commitments made by Ukraine in respect of JKX’s investments.”

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