Last updated on April 21, 2014 at 11:58 EDT

Ukraine Invests in Energy Independence

April 28, 2012

KYIV, Ukraine, April 28, 2012 /PRNewswire/ –

The jack-up rig for oil and gas extraction from the shelf of the Black Sea will enter
the territorial waters of Ukraine on May 1st, 2012. This move is part of Ukrainian policy
aimed at energy independence through increasing domestic energy production. The two newly
acquired jack-up rigs will allow Ukraine to extract additional 250 million cubic meters of
gas by the end of 2012, said Minister Boyko.

The state-owned company Chornomornaftogaz bought two jack-up rigs from the Singapore
producers pursuing the aim of ridding Ukraine of energy dependency from outside suppliers.
The purchase of the two mobile platforms will provide the country with additional 3
billion cubic meters of gas by the end of 2014, said Ukraine’s energy minister Yuriy
Boyko. The first rig will be installed at the joint fields Odeske/Bezimenne on the Black
Sea shelf in June 2012.

Equipment Chornomornaftogaz currently uses allows for drilling at depths not exceeding
100 meters. The new rig, on the other hand, works with wells located 100-120 meters under
the water surface. This opens new opportunities to develop the shelf reserves.
Additionally, the new equipment can drill 9 kilometers into the shelf, whereas previously
it was only possible to drill wells 4.5-5 kilometers deep.

At the beginning of 2012, Chornomornaftogaz was developing 17 wells, including 11 gas
wells. Total estimated reserves amount to 58.56 billion cubic meters of natural gas, 1.231
million tons of natural-gas condensate, as well as 2.53 million tons of oil, informs

Besides increasing domestic extraction, Ukraine is also diversifying its energy sector
by looking for new oil and gas suppliers. The country is eyeing projects on gas supply
from Azerbaijan, Iraq, Norway, Romania, and Turkey. Moreover, Ukraine plans to construct
the LNG terminal with annual capacity of 10 billion cubic meters on the Black Sea shore.
The construction is scheduled to be completed by 2014.

At the beginning of 2012 Ukraine announced its intention to buy 27 billion cubic
meters of gas from Russia, as opposed to more than 40 billion the country acquired in
2011. Ukrainian officials insist the country overpays some USD 4 to 5 billion annually for
Russian gas.

SOURCE Worldwide News Ukraine

Source: PR Newswire