Ukraine Cancels US Oil Exploration Dealadmin
Ukraine is canceling a contract with a U.S. oil company planning to explore for oil and gas on the Black Sea underwater shelf.
The government says the production-sharing agreement that was signed in 2006 with the subsidiary of Texas-based Vanco Energy Co. is “plundering Ukraine’s mineral reserves.”
Last month, Ukraine revoked Vanco’s license, and Prime Minister Yulia Tymoshenko called for an investigation into how the license was awarded.
She accused President Viktor Yushchenko of lobbying for the U.S. firm. The contract was worth some $13 million.