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Eni enters Ukraine
Posted 14.04.2011 13:08:14 av John Bradbury
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Italy's Eni has inked a final agreement with British-based Cadogan Petroleum covering two exploration licences in Ukraine.

Eni says the deal with Cadogan is part of its strategy to expand in eastern Europe and it has agreed to take 30% in the Pokrovskoe exploration licence in Ukraine with an option to take another 30% later and 60% in the Zagoryanska licence area.

Both properties are in the Dniepr-Donetz river basin, regarded as one of the most promising in the country, according to Eni.

Initially Eni will invest US $30 million in first phase work programme which will include drilling and reprocessing existing seismic data, and payment of a further $38 million. “Subject to successful results from these programmes, the definition of a development plan and the award of the production licences, Eni will pay further amounts of up to $90 million within the next year,” stated the Italian energy group.

This year the work programme entails a drilling and workover campaign to put four wells into production, and to prepare a full field development plan from ongoing studies. Together Cadogan and Eni also intend to carry out further appraisal work after previous discoveries across the two blocks.
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