Eni Acquires 50.01 Per Cent Stake in Westgasinvest

Ukraine-focused explorer and producer Cadogan Petroleum has announced that it has finalised a deal with Italian producer Eni, which will see Eni take a 50.01 per cent stake in unconventional gas joint venture Westgasinvest.

The announcement heralds the completion of a deal signed in June this year under which Eni agreed to acquire the majority stake from JV partners Cadogan and Nadra Ukrainy. It also follows a cooperation agreement signed between Cadogan and Eni in 2011, under which the two companies agreed to invest up to $55 million (USD) in shale gas exploration and production in Ukraine.

The deal grants Eni access to nine unconventional licences in Ukraine in the shale prospective Lviv Basin, a basin Cadogan describes as one of the most attractive shale basins on the continent.

"The Lviv Basin is considered to be one of the most attractive basins in Europe for the exploration of unconventional gas, being a continuation of the Lublin Basin in Poland which has already attracted substantial interest from the hydrocarbon industry," Cadogan's statement said.

Following the completion of this deal, Cadogan will retain a 15 per cent stake while Nadra Ukrainy will retain a 34.99 per cent stake.