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Ukraine mulls to speed up Black Sea offshore
gas deposit near Kerch
Journal Staff Report
Ukrainian Journal
July 12, 2006 - Kiev
Ukraine’s government may speed up its decision allowing
Vanco Energy to go ahead with investments in development of a Black
Sea oil and gas field near Kerch, Environment Minister Pavlo Ihnatenko
said.
The government hopes the development of the field would lead to
an investment of up to $2 billion and would increase domestic production
of natural gas thus reducing dependence on Russia.
Ukraine may seek to accelerate the project amid signs that creation
of the pro-Russian coalition last week could technically postpone
the project indefinitely.
"I proposed at a Cabinet meeting to speed up the completion
and conclusion of this agreement," Ihnatenko said at a recent
government meeting.
"If we see a change in the position of the government, in
the state's policies - both foreign and domestic” the project
could get postponed, Ihnatenko said. “That’s why I have
called for the rapid conclusion of a production sharing agreement
(PSA) for the Kerch zone oil and gas fields.”
Vanco Energy Company, a U.S.-based independent oil and gas company,
at a tender April 19 defeated a consortium between ExxonMobil and
Shell, while other companies bidding included a U.S.-based Hunt
Overseas Oil Company, the world’s largest privately-held oil
company, and UkrNafta, Ukraine’s largest oil company.
The overall area of the likely field near Kerch is 12,960 square
kilometers, while depths range from 70 meters to 2,000 meters.
Ukraine counts on its off-shore natural gas deposits for boosting
its gas output to 30 billion cu m annually within the next several
years, up from about 20 Bcm/year currently. Ukraine seeks to boost
domestic natural gas output to reduce its heavily dependence on
energy imports.
Ukraine’s explored reserves of natural gas are estimated
at about 1 trillion cu m, while total reserves, including those
offshore the Black Sea, could be as high as 5 trillion cu m of gas,
government officials have said. (sb/om/ez)
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