The Polish state-owned oil and gas company has signed an agreement with the Ukrainian-American Energy Resources of Ukraine (ERU) on joint exploration of gas in Ukraine. The Polish company is purchasing a controlling stake( 85%) in Karpatgazvydobuvannia, the sole holder of a license to extract gas at Biblivska Oil and Gas Square in western Ukraine, in the area adjacent to the border with Poland. Drilling will begin in the second half of 2022 with further testing planned. If positive results are achieved, the well will be connected to the Ukrainian gas grid and put into operation in 2023. Last year, PGNiG sold 1.2 billion cubic meters of gas to Ukraine, and another 210 million cubic meters in the first quarter of 2021.