Eni SpA (NYSE:E) (BIT:ENI) CEO Paolo Scaroni met with Viktor Yanukovych, the President of Ukraine on 30 Oct to discuss Eni’s work in the country. Scaroni displayed a keen interest in the country and assured President Yanukovych of his company’s commitment to developing hydrocarbons in the area.
Eni SpA (NYSE:E) (BIT:ENI) has been present in Ukraine since April 2011 when it first reached an agreement with Cadogan Petroleum Plc (LON:CAD) for the acquisition of stake in two exploration and development licenses in the area of Dnieper-Donets Basin.
Cadogan and Eni have agreed to begin
“The agreement, which is part of Eni SpA (NYSE:E) (BIT:ENI)’s strategy of strengthening its position in Eastern Europe, will allow the company to acquire 30% of the Pokrovskoe exploration permit, with an option to purchase a stake of up to 60%. Eni SpA (NYSE:E) (BIT:ENI) will also acquire a 60% stake of the Zagoryanska exploration license. Cadogan Petroleum Plc (LON:CAD) and Eni have agreed to begin as soon as possible an evaluation campaign of both blocks in order to assess the hydrocarbons discovered in previous drilling operations. The programme includes drilling and workover activities for the operation of up to four wells within the year and the preparation a full field development plan drawn up on the basis of the ongoing studies,” reported Eni at the time.
In June 2012, Eni SpA (NYSE:E) (BIT:ENI) reached another agreement with Nadra Ukrayny and Cadogan Petroleum for the development of unconventional gas and acquired a controlling stake of 50.01% in the Ukranian company LLC Westgasinvest.
This gave Eni SpA (NYSE:E) (BIT:ENI) access to the the rights of LLC Westgasinvest, which holds nine exploration and development licenses for shale gas. These licenses are spread out over the Lviv basin in western Ukraine near the border with Poland, covering an area of about 3,800 square kilometers.
“The Lviv basin is considered one of the areas with the highest potential in Europe for the exploration of unconventional gas, also constituting an extension of the Lublin basin in Poland, which has attracted significant interest from the hydrocarbon industry,” reports Eni.
Ukraine is a very promising region
Ukraine is a very promising region, especially in the area of shale oil and gas. Eni SpA (NYSE:E) (BIT:ENI) believes in the potential of Ukraine and reports that the country has 969 billion cubic meters of gas reserves in addition to 395 million barrels of oil. The country has an annual production of 18.5 billion cubic meters of gas along with a production of 81,000 barrels of oil per day.
“Eni SpA (NYSE:E) (BIT:ENI) holds interests in two exploration and development licenses in the country, Zagoryanska and Pokroskoe, located in the Dnieper-Doneyz basin,” reports the company.