Polskie Górnictwo Naftowe i Gazownictwo S A : Poland's PGNiG and Ukraine's ERU team up on gas exploration

Poland's leading gas firm, state-run PGNiG, said on Monday it agreed a deal with Ukraine's ERU Management Services to cooperate on hydrocarbon extraction and exploration in Ukraine.

The contract concerns work on the extension of the Przemysl field, on the Ukrainian side of the border, said PGNiG Chief Executive Piotr Wozniak.

"It would be a shame, especially in the face of the challenges that we face at the turn of this and next year, and later, not take advantage of it," Wozniak said.

He added that the gas extracted could be used in Ukraine but that PGNiG would want some of the gas to go to Poland.

"This contract makes us an active player in the region's gas market and also contributes to the safety of Poland and all countries," said Polish presidential aide Krzysztof Szczerski during a press conference to announce the agreement.

(Reporting by Anna Koper, Writing by Alan Charlish,; Editing by Louise Heavens)