U.S. company Vanco has been given a green light to search for hydrocarbons in the Ukrainian sector of the Black Sea, the Kyiv Post yesterday reported.
The Prykerchenska project, for which the company received the rights in 2006, was unilaterally cancelled by the previous government of Julia Tymoshenko in 2008, who said that the decision was made to protect the country’s interests.
Jim Bown, President of Vanco Prykerchenska Ltd, in an e-mail sent to Offshore Energy Today, confirmed that the report by the Kyiv Post was correct.
He recently told Interfax that Vanco expected all legal formalities between the company and Ukraine would be competed during March 2013.
Bown added that successful implementation of the Prykerchenska Project would contribute to the development of the country’s oil and gas market, transparency of processes taking place on it and increase the energy independence of Ukraine in general. The project is expected to create 5.000 new jobs.
According to the production sharing contract, Ukraine will receive at least 70% of the total value created by the Prykerchenska offshore project, with all produced hydrocarbons directed at the domestic market.
Offshore Energy Today Staff,February 14, 2013