Crimean authorities not ruling out future privatization of Chornomornaftogaz

“After the company’s nationalization we will publicly make a
decision, if there is a large investor such as Gazprom or others, to
conduct this procedure (privatization) as part of an open tender,”
Temirgaliyev said.

Chornomornaftogaz will be nationalized and become a Crimean company in the very near future, Temirgaliyev said.

“All company assets, including drilling rigs, the fleet, and fields
will be nationalized. The company will be extracting gas in the Crimean
territory on the Black Sea shelf,” he said.

The company is capable of fully stocking up the Hlibovske gas storage
facility and plans additional development in a number of perspective
fields. “The company is to begin developing a whole host of fields,
including the Prykerchensky, in the very near future. All
Chornomornaftogaz facilities including the Shtormove and Odeske fields,
have been taken under armed protection,” the first deputy prime minister
said.

Chornomornaftogaz needs an investment of over $1 billion, he said.

“Speaking of a three-to-five-year period, the volume of investment,
with the development of new boreholes, exceeds $1 billion. The company
will be applying for a Gazprombank loan of over $100 million as early as
next week,” the first deputy prime minister said.