Crimea: the Oil and Gas Story

Eni had been made operator of this eastern Crimean area with a 50-percent stake, while other partners included EDF (5 percent) and Ukrainian state-owned companies Vody Ukrainy (35 percent) and Chornomornaftogaz (10 percent). However, in an interview with the Financial Times in late March, Eni CEO Paolo Scaroni said that the company’s plans to explore for gas in the Black Sea off Crimea are now on hold.

How this plays out remains to be seen, but the recent nationalization by Crimea of Choromornaftogaz (which had been a subsidiary of Ukrainian state oil firm Naftogaz), along with the arrival of a team of Gazprom executives at its head office in mid-March, could be seen as a sign that any gas found in eastern Crimea will now end up in Russian hands.




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