Tuesday, 11 March 2014

Ukraine Crisis Endangers Exxon’s Black Sea Gas Drilling: Energy - Bloomberg

Ukraine Crisis Endangers Exxon’s Black Sea Gas Drilling: Energy - Bloomberg:



"Crimea’s hastily organized vote this weekend on whether to leave Ukraine to join Russia is threatening Black Sea oil and natural gas drilling prospects coveted by Exxon Mobil Corp. (XOM) and Eni SpA. (ENI) 




Before violent protests in Kiev overthrew pro-Moscow President Viktor Yanukovych and Russian troops occupied parts of Crimea, a group including Exxon and Royal Dutch Shell Plc (RDSA) planned to spend $735 million drilling two wells about 50 miles (80 kilometers) from the region’s southwest coast.



Today it’s not even clear whether the government in Kiev will have the power to award oil and gas licenses in Black Sea waters around the disputed region. The parliament in Crimea, the only area of Ukraine where Russian speakers are in the majority, said last week it voted to join the Russian Federation and would put the plan to a referendum on March 16.



“Exxon and Shell are now in a legal limbo,” said Chris Weafer, a partner at Macro Advisory in Moscow. They pursued an “exploration deal with a government which may soon no longer have jurisdiction over the region.”"



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