The Ukraine has signed an offshore oil and gas production sharing agreement with Italian group Eni and France’s EDF. The project is predicted to draw up to $4 billion of investment, according to Kiev’s energy minister.
Eni said a statement that the agreement concerned a 1400 square-km area in the waters off Western Crimea, including the Subbotina oil license as well as the Pry Kerch block where several oil and gas prospects have been identified.
The plan to explore for oil and gas in this area could provide the Ukraine with up to 3 million tonnes of oil a year.
Eni will be the operator in the venture and will take a 50% stake, whilst EDF holds 5%. State controlled firms Vody Ukrainy and Chornomornadtogaz will have 35% and 10% respectively.
The agreement with Eni and EDF would be the third large energy project launched by Ukraine in the past two years as it steps up efforts to gain greater energy independence.