CBM Oil to Offer Naftogaz a 50% Stake?

In an interview, the chairman of CBM Oil, an international E&P company, said that the company will do its best to finance drilling on the Black Sea shelf, but it could also offer up to a 50% stake to Naftogaz of Ukraine, on a non-cash basis. Earlier it was reported that CBM Oil and Naftogaz signed a preliminary agreement for exploration and development of off-shore fields in Western Crimea. In the first stage, CBM planned to invest USD 25-30 mln. CBM is planning an IPO on AIM in September. Vladimir Nesterenko: We welcome the arrival of international oil companies, as Ukraine continues to actively seek ways to reduce dependence on Russian supplies. However, reliance on cooperation with Ukraine’s state-owned companies has proved to be a risky strategy, thanks mainly to the relatively unstable political environment in the country. For example, since Jan.1 2007 all the JAA’s with state companies were obliged to sell their gas below the market (contrary to independent producers).