You're reading: Italy’s Eni to buy Cadogan’s Ukrainian hydrocarbon licenses

British oil explorer Cadogan Petroleum said on April 13 that Italian oil and gas group Eni would buy a stake in two of its licenses in eastern Ukraine.

Reuters – British oil explorer Cadogan Petroleum said on April 13 that Italian oil and gas group Eni would buy a stake in two of its licenses in eastern Ukraine. Eni will pay $38 million initially and fund a $30 million work program. Eni will also pay Cadogan up to an additional $90 million, depending on successful results from the programs and getting production licenses.

Eni will get a 30 percent interest in the Pokrovskoe license, with an option to buy a further 30 percent interest. It will acquire a 60 percent interest in the Zagoryanska license.

Subject to approval from Cadogan shareholders and the Ukrainian Anti-Monopoly Commission, the deal is expected to close by July.

Cadogan, whose oil and gas activities are located exclusively in Ukraine, said it planned to use the proceeds to fund Zagoryanska work programs and develop its other assets.