Black Sea

Italian energy firm Eni has signed a production sharing agreement with the Ukrainian Government for exploration and development operations in Ukraine’s Black Sea.

Eni signed the agreement with the government, which is represented by the Minister of Energy Eduard Stavytsky, in the presence of the President of Ukraine, Viktor Janukovic.

Located in the eastern part of the Crimean peninsula, the offshore area covers about 1,400km² and offers considerable exploration potential.

The area includes a license for Subbotina, along with licences for Abiha, Mayachna and Kavkazka, where several oil and gas prospects have been identified.

Collectively the licences are known as the Pry Kerch block.

Eni is the operator (with 50% P.I.) of a joint venture with EDF (five percent P.I.) and companies including Vody Ukrainy (35% P.I.) and Chornomornaftogaz (ten percent), both of which are fully-owned by NJSC Nadra Ukrainy and NJSC Naftogaz Ucraina.

The PSA follows cooperation agreements established in 2011 with the state-owned company and will strengthen the company’s presence in Ukraine.

The company has been present in Ukraine since 2011 as a non-operating partner in the Zagoryanska and Pokroskoe licenses, located in the Dniepr-Donetz Basin.

Eni acquired a 50.01% stake and operatorship in LLC Westgasinvest in 2012.

Westgasinvest holds rights to nine unconventional gas license areas in the Lviv Basin at present, in western Ukraine, totalling about 3,800km² of acreage.

Eni claims the company’s experience of exploration, development and production in analogous reservoirs and its technical knowledge required for the development of offshore activities will ensure the project’s success.

Image: Black Sea map. Photo courtesy of User:NormanEinstein.