Naftogaz received permission to develop offshore gas fields

NJSC Naftogaz of Ukraine informs that the Cabinet of Ministers of Ukraine instructed the company to conduct geological exploration of the Ukrainian part of the Black Sea shelf and granted the company the right to obtain special permits for the development of oil and gas fields at sea.

“We, for our part, are determined and ready to start seismic surveys at sea as soon as possible, after the decision of the official procedures. According to preliminary calculations, investments in the first year of operation on the shelf can reach up to $40 million,” the statement says.

Naftogaz must find and put on the balance sheet gas reserves within the shelf. After obtaining the results of geological studies that the company plans to perform and remove the existing risks, one can expect an increase in this asset's value. This means the opportunity to attract international investors.

The company noted that powerful prospects on the shelf are opening up for Ukraine.

“This is confirmed by the successes of our neighbors - Turkey and Romania, in the Black Sea. It is on the sea territory that our country's largest gas resources are concentrated - 1-2 trillion m³. In the long term, this means the possibility of producing up to 10 billion m³/year. Finally, Ukraine has a chance to join the list of countries with a success story on the shelf.”

Tags: The Cabinet of Ministers, Naftogaz, legislation, gas production, drilling, natural gas

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