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Monday, January 27, 2014

Ukraine postpones signing gas production sharing deal with Exxon, (NYSE: XOM)

The signing of a gas production-sharing agreement between Ukraine and an international consortium led by U.S. major Exxon Mobil has been postponed for the second time in a row, Ukraine's fuel and energy minister said on Monday. "We will sign it (the agreement) in February," Eduard Stavytsky told reporters in brief remarks after an official briefing. He did not give a reason for the fresh delay.The government orginally intended to sign the deal, which is expected to bring Ukraine several billion cubic metres (bcm) of gas per year, in November but Stavytsky postponed the decision until January due to mass anti-government protests in Kiev.In 2012, Ukraine selected a group of companies led by Exxon Mobil to explore conventional gas deposits in the southern Skifska area on the Black Sea shelf, which has a potential output of 3 bcm of gas per year.The postponed deal would have formalised a production sharing agreement for these deposits.

Exxon Mobil Corporation is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. Shares of XOM traded higher by 0.44% or $0.42/share to $95.27. In the past year, the shares have traded as low as $84.79 and as high as $101.74. On average, 12471200 shares of XOM exchange hands on a given day and today's volume is recorded at 2030884.