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EBRD acquires 5.2 % in Cadogan Petroleum plc
Investment to promote oil & gas exploration and production in Ukraine
The European Bank for Reconstruction and Development has acquired a 5.2 per
cent stake in Cadogan Petroleum, a public limited company incorporated in the
United Kingdom and involved in the exploration and development gas fields in
Ukraine. The EBRD may in the future increase its stake to up to 10 per cent.
The project will fund the exploration, development and production of deep gas
fields in Poltava region of eastern Ukraine.
Cadogan Petroleum plc plans to start production of gas and condensate in
Pirkovskoe and Pokrovskoe gas fields. It is introducing enhanced drilling
technology that enables gas to be extracted from depths of more than 5,500
metres as well as hydraulic fracturing technology which significantly enhances
both well productivity and oil and gas recovery. Cadogan Petroleum will
contribute directly to improvements to technology and know-how in the
Ukrainian oil and gas upstream sector.
Kevin Bortz, EBRD Director for Natural Resources, said the Bank is trying to
identify more projects that will increase oil and gas production in Ukraine.
The EBRD is also happy to support private oil and gas exploration and
production ventures in a sector otherwise dominated by the state-owned
companies, he added.
Mark Tolley, CEO of Cadogan Petroleum, said the EBRD’s investment in Cadogan
Petroleum creates an alliance which will facilitate efficient and economical
exploitation of the deep gas reserves in Ukraine, potentially leading to a
significant increase in Ukrainian gas production capability.
The European Bank for Reconstruction and Development is the biggest financial
investor in Ukraine. As of 31 December 2006 it had committed €2.87 billion
through more than 130 projects.
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