Eni joins Cadogan in two exploration and development licenses in Ukraine

Source: Eni

Italian producer Eni (NYSE:E) has reached an agreement with Cadogan Petroleum plc to farm-in two exploration and development licenses located in the prolific Dniepr-Donetz Basin, one of the most promising in Ukraine

The agreement, which is in line with Eni's strategy of strengthening its position in East Europe, will enable the Company to acquire 30% with an option to increase its participation up to 60% in the Pokrovskoe exploration license. The company will also acquire a 60% interest in the Zagoryanska license. 

In the initial period, Eni will fund a work program of approximately $30 million including drilling and seismic re-processing, plus a consideration of a $38 million payment. Subject to successful results from these programs, the definition of a development plan and the award of the production licenses, Eni will pay further amounts of up to $90 million within the next year. 

Cadogan and Eni intend to immediately progress with an appraisal campaign on both blocks to fully evaluate hydrocarbons encountered in previous drilling operations. The planned work program includes a drilling and workover campaign to put up to four wells on stream within the current year and to prepare a full field development plan on the basis of the ongoing studies. 

The licenses will be operated through a joint operating structure which has already been agreed by the companies. 

This agreement, following the signing of a Memorandum of Understanding with the Ministry of Ecology and Natural Resources of Ukraine on March 25th, confirms Eni's interest in the Country and consolidates its presence in Eastern Europe following its entrance in to Poland in 2010.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs