Frontera, Naftogaz Sign 2-year MoU for Upstream, LNG
Ukraine is trying to find in the United States a strong business partner, with Kiev asking Washington to help reforming the country’s oil and gas sector. Meanwhile, Naftogaz also opened the door to an American company, which could soon cooperate in the upstream and LNG sectors.
“We’re inspired by this considerable interest in our country, and we highly appreciate US support for reforming Ukraine’s oil and gas sector. These changes make the sector attractive for western investments at each stage of the value chain, including gas production, transportation and consumption. The investments are needed to reduce Ukraine’s dependence on gas imports, create new jobs and make energy consumption in Ukraine more efficient”, Andriy Kobolyev, CEO of Naftogaz, commented in a note released on Wednesday.
Kobolyev informed US businesses about Ukraine’s efforts to reform Naftogaz and Ukraine’s gas market over the last 15 months, mentioning the elimination of intermediaries in gas trade, the the development of the corporate governance reform strategy, and the adoption of the new Gas Market Law.
During the same conference in Washington, Naftogaz signed a 2-year Memorandum of Understanding with Frontera Resources, a US oil and gas company.
‘The parties plan to assess feasibility of a potential cooperation in exploration and development of Ukraine’s oil and gas, as well as in implementation of the project of LNG imports from Frontera Resources capacities in Georgia.’
Frontera could emerge as a strong voice in the region.
“We are very pleased to continue to advance our initiatives in Ukraine and, in particular, our relationship with Naftogaz. This important MOU reflects Frontera’s ongoing focus to progress its Greater Black Sea Strategy by pursuing new growth throughout a region that contains significant underdeveloped and under-explored oil and gas potential” Steve Nicandros, Chairman and Chief Executive Officer, commented in a separate press release.
Frontera is interested in exporting LNG to Ukraine from Georgia. The company said it identified combined prospective natural gas resources of as much as 12.9 trillion cubic feet (365 billion cubic meters) of gas-in-place, with as much as 9.4 trillion cubic feet (266 billion cubic meters) of recoverable prospective natural gas resources at the Mtsare Khevi Gas Complex and Taribani Field Complex.
Naftogaz also discussed cooperation opportunities with a second American company.
‘TrailStone, a US-based oil and gas company which supplies gas to Naftogaz in the European market, announced its plans to enter the Ukrainian market in the autumn of 2015. Naftogaz welcomed this decision and expressed its commitment to support the entry of new Western market players in the Ukrainian market.’
Last month, Senator John McCain said at a press conference in Kiev that the United States will be able to supply gas to Ukraine and other countries of Europe within two years.