OREANDA-NEWS. On October 19, 2007 Ukraine has signed an agreement on Friday on distribution of products while developing the Kerch section of the Black Sea shelf with the Vanco International Ltd (USA), reported the Official website www.kmu.gov.ua.

The document was signed by Vice Prime Minister Andriy Kliuyev and Vanco president Gene Van Dyke.

At a meeting, which preceded the signing ceremony, President Yushchenko highly appreciated the fact of signing the agreement. According to him, it is an impetus for scaled facilitation of development of the Ukrainian section of the continental shelf of the Black Sea.

Following the agreement signing Ukrainian Minister for Natural Environment Vasyl Dzharty said the government had defended the right of control of the cost of produce when developing the shelf section.

In a previous variant of the agreement, the cost issues were controlled by the company itself.

According to the minister, annually the plan of hydrocarbon extraction will be approved by an interagency group.

The minister said the American company means to start drilling in early 2008.

In 2006 the Cabinet of ministers approved results of the competition for developing the Kerch section, in which Vanco International has won.

Ukraine expects some 15 bn. USD investments from the agreement, which has been concluded for 30 years. The investments will be made to geological study and extraction of over 200 million tons of hydrocarbon. The project realization will secure over 200 bn. UAH additional incomings to the budget and creating several thousand jobs.

The successful realization of the project at the Kerch section may form a real alternative source to import supplies of oil and gas to Ukraine and promote its energy independence.