Naftogaz signed a MoU with Naphtha Israel on joint exploration in the Ukrainian Black Sea

Kiev, March 15 - Neftegaz.RU. The Parties have signed a Memorandum of Understanding regarding a potential hydrocarbons exploration in Ukrainian Black Sea.
Naphtha has financial capabilities and proven positive work experience in the US and in Offshore Israel, which will be useful for unlocking the oil and gas potential of Ukrainian offshore.

Otto Waterlander, Chief Operating Officer of Naftogaz, said:

• It is essential for us to have such partners as Naphtha for Black Sea exploration and development, which is going to be the most capital-intensive project in our portfolio
• this new partnership will strengthen our ambitions in that region even further
• Naphtha has a proven track-record of working with required deep-water technologies, and business relationship with leading offshore operators

Under the Strategy approved in 2020, the Naftogaz Group has launched strategic projects aimed at growing the resource base in the Black Sea shelf and deep-water, Yuzivska block, the Carpathian region, and new PSA blocks

Eran Lendner, CEO of Naphtha Israel Petroleum, said:

• Black Sea is long known for its great potential of natural gas
• Unfortunately, Ukrainian part of the Black Sea has remained under-explored
• We welcome recent decision of Ukrainian government to grant Naftogaz exclusive rights for this area to finally conduct its de-risking and attempt to prove its potential
• We view Ukrainian natural gas market as potentially attractive in long-term, and believe that may be the right place strategically to allocate our investments

Naftogaz last month signed a memorandum with Austro-Romanian firm OMV Petrom for offshore operations in Ukraine.
Through the new partnership, Naftogaz is looking to access Naphtha Israel's financial capabilities and operational experience in Israel and the US.