Reuters: Ukraine signs oil, gas deal with Eni and EDF, sees $4 billion investment

Ukraine signed an offshore oil and gas production-sharing agreement with Italian group Eni and France's EDF on Wednesday and Kiev's energy minister estimated the project could draw up to $4 billion of investment.

The scheme to explore for oil and gas on the western Black Sea's shallow shelf could provide Ukraine with up to 3 million tonnes of oil a year, Energy Minister Eduard Stavytsky was quoted as saying by Ukrainian news agency UNIAN.

The former Soviet republic consumes around 5 million tonnes of oil per year, including 1.5 million tonnes of imports that are mostly from Russia.

The UNIAN report gave no details on expectations for gas production.

Eni said in a statement the agreement signed on Wednesday concerned a 1,400 square-km area in waters off Western Crimea. The area includes the Subbotina oil license as well as the Pry Kerch block where several oil and gas prospects have been identified.

Eni, which already has a shale gas deal in Ukraine, said it would be the operator in the venture with a stake of 50 percent. MORE