UPDATE 1-PGNiG to buy into Petrolinvest or buy its assets

WARSAW, Nov 25 (Reuters) - Polish gas monopoly PGNiG will buy into Polish oil venture Petrolinvest or will buy its Kazakhstan drilling assets, Petrolinvest said in a statement.

'The deal means that PGNiG, which is a national operator, has gained, in addition to operational control, the possibility of adding Petrolinvest's Kazakhstan assets to its own portfolio,' Petrolinvest said in a statement.

Shares in the venture jumped by up to 10 percent on the news, with PGNiG hovering around Tuesday's closing levels.

Petrolinvest, an oil venture forged by one of Poland's richest men, Ryszard Krauze, made its debut on the Warsaw bourse in 2007 when equity markets were booming and promised to move rapidly to oil production, but has so far failed to deliver.

'This surely ensures Petrolinvest will continue its operations,' DI BRE analyst Kamil Kliszcz said.

'It's hard to say what benefits it should yield for the two companies as we don't know any details on price. I think it should not negatively impact PGNiG. Petrolinvest seems to be under greater pressure to sign the deal than PGNiG.'

PGNiG and Petrolinvest Chief Executive Pawel Gricuk declined to comment, adding that the two companies would hold a joint news conference on Thursday.

(Reporting by Adrian Krajewski and Agnieszka Barteczko; Editing by David Holmes) Keywords: PETROLINVEST/PGNIG ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.