Lukoil will not develop the Ukrainian Black Sea shelf deposits

On Friday, the Cabinet of Minister of the Ukraine published the order releasing Lukoil from the right to jointly develop with Chernomorneftegaz 3 perspective sites of the Black Sea shelf. Lukoil invested nearly nothing into the arrangement of the deposits, that’s why it’s offered to other investors including Eni and Electricite de France.

The Cabinet of Minister of the Ukraine cancelled the decision about the joint operation of Lukoil and Chernomorneftegaz at 3 sites of the Ukrainian Black Sea shelf, under the Governmental order #886-p made public on October 17th. They are Odesskoye, Bezymyannoye and Subbotino. The Cabinet allowed the companies to develop the deposits in December 2010. Chernomorneftegaz should have taken not less than 50% in products sharing. Its investment to the project is geological and economic evaluation of oil, gas and associated components’ reserves at the deposits. Lukoil should have provided financial resources, technologies and equipment. The company has no other projects for hydrocarbons production in the Ukraine.