KIEV/MILAN, Nov 27 (Reuters) - Ukraine signed an offshoreoil and gas production-sharing agreement with Italian group Eni and France's EDF on Wednesday and Kiev'senergy minister estimated the project could draw up to $4billion of investment.
The scheme to explore for oil and gas on the western BlackSea's shallow shelf could provide Ukraine with up to 3 milliontonnes of oil a year, Energy Minister Eduard Stavytsky wasquoted as saying by Ukrainian news agency UNIAN.
The former Soviet republic consumes around 5 million tonnesof oil per year, including 1.5 million tonnes of imports thatare mostly from Russia.
The UNIAN report gave no details on expectations for gasproduction.
Eni said in a statement the agreement signed on Wednesdayconcerned a 1,400 square-km area in waters off Western Crimea.The area includes the Subbotina oil licence as well as the PryKerch block where several oil and gas prospects have beenidentified.
Eni, which already has a shale gas deal in Ukraine, said itwould be the operator in the venture with a stake of 50 percent.
France's EDF holds 5 percent in the deal whilestate-controlled firms Vody Ukrainy and Chornomornaftogaz willhave 35 percent and 10 percent respectively.
Ukraine relies on Russia for the vast majority of its oiland gas imports, and Moscow has been accused of using energy toexert political influence over Kiev.
The European Union said Russia applied economic pressure onKiev to suspend the signing of a landmark free-trade pact withthe 28-nation bloc that would mark a shift away from Russia'ssphere of influence.
The agreement with Eni and EDF would be the third largeenergy project launched by Ukraine in the past two years as itsteps up efforts to gain greater energy independence.
This month Ukraine signed a $10 billion shale gasproduction-sharing agreement with U.S. company Chevron,having already clinched a $10 billion deal gas exploration dealwith Royal Dutch Shell at Yuzivska in the eastern partof the country.
The two shale projects could provide Ukraine with up to 16billion cubic metres (bcm) of gas a year by 2020, according toprojections by the Kiev government.
Ukraine now pays more than any other European country forRussian gas, with Moscow charging $400 per thousand cubic metresunder a 10-year agreement signed in 2009, and it has failed inattempts to renegotiate terms with Moscow.
Ukraine's President Viktor Yanukovych this week said thatthe average European price for Russian gas is about $370 perthousand cubic metres.
