Ukrainian National Joint Stock Company "Naftogaz of Ukraine" and American Marathon International Petroleum, Ltd., have inked an Agreement on joint exploration of North-Western part of Dnieper-Donets Basin

On June 5, 2007, the National Joint Stock Company Naftogaz of Ukraine (Ukraine) and Marathon International Petroleum Ltd. (USA) signed an Agreement to carry out technical studies and joint exploration for hydrocarbons in the North-Western part of Ukrainian Dnieper-Donets Basin. Yevgen Bakulin, chairman of the board of Naftogaz of Ukraine and Philip G. Behrman, senior vice president of Marathon International Petroleum, inked the Agreement in the presence of the Extraordinary and Plenipotentiary Ambassador of the USA in Ukraine William Taylor.

According to the Agreement, the parties will embark on a joint study of an agreed area of interest of 30,000 km2 located in the north-west of Poltavska oblast and south of Chernigivska oblast. The study will be conducted over a three-year period and aimed at exploration for and further production of hydrocarbons in the above-mentioned prospects . The Dnieper-Donets Basin is believed to contain 200 billion cubic meters of natural gas, 46 million tons of gas condensate and 130 million tons of oil.

“Naftogaz of Ukraine” and Marathon International Petroleum will jointly study and explore new prospects. This area has not been earlier developed by “Naftogaz of Ukraine” as the recovery of hydrocarbon resources here is subject to significant subsurface challenges. Combination of Ukrainian and American experience in exploration and production of hydrocarbons coupled with application of unique modern technologies will provide for profitable development of deep hydrocarbons deposits.

“By signing the Agreement with one of the world largest company engaged in oil and gas exploration and development, “Naftogaz of Ukraine” seeks out to increase its oil and natural gas reserves, as well as energy resources production within the next several years,” said Yevgen Bakulin, delivering his speech during the official signing ceremony.

Info: Marathon International Petroleum Ltd. is a wholly-owned subsidiary of Marathon Oil Company, an internationally integrated energy company involved in exploration, production, refining, marketing and transportation operations. Marathon Oil is the fourth largest oil company in the United States and the fifth largest refiner in the USA. Company’s headquarter is based in Houston (Texas, USA). Marathon Oil operates in the USA, Angola, Canada, Equatorial Guinea, Gabon, Indonesia, Ireland, Lebanon, Norway and Great Britain. Marathon sells its oil products through more than 5,700 outlets located in 17 American States.

The National Joint Stock Company “Naftogaz of Ukraine” is consistently follows its strategy of engaging international oil and natural gas companies in exploration and production of energy resources in Ukraine. On 8 June, 2006, in Hague, “UkrGasProduction” (Naftogaz’ subsidiary) and Shell Exploration and Production Company inked a large-scale agreement on joint activities to seek out and explore for oil and gas resources. This agreement covers an area of more than 31,000 km2.

According to the agreement on joint activities, Shell Exploration and Production Company develops 8 blocks with deep oil and natural gas deposits located in the eastern part of Dnieprer-Donets Basin (Kharkivska oblast); licenses their development are owned by “UkrGasProduction”. “UkrGasProduction” and Shell have established a joint working group of technical experts, which is currently putting together a work plan for geological exploration of super-deep horizons within two blocks.

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