Ukraine's Naftogaz seeks JVs with Gazprom-paper

KIEV, July 5 (Reuters) - Ukraine's state energy firm Naftogaz thinks Gazprom should join it in joint ventures to explore for oil and gas on the Black Sea shelf and in Russia, the company's head said in a newspaper interview on Saturday.

Ukraine is usually wary of too much Gazprom (GAZP.MM: Quote, Profile, Research) participation in its energy markets -- relations between Moscow and Kiev are periodically strained over gas prices and the Russian giant supplies Ukraine with most of its gas needs.

"I would propose talks on joint development of Ukraine's (part of the) Black Sea with Gazprom and talks about joint development of gas deposits on the territory of the Russian Federation," Oleh Dubyna told the weekly Zerkalo Niediela newspaper.

"They are most likely to be interested in the oil on the shelf. We are ready to develop Ukrainian deposits on the shelf and give them oil in return for gas, in which we are more interested," he said.

Gazprom has an oil unit, Gazprom Neft (SIBN.MM: Quote, Profile, Research).

In May Ukraine cancelled an exploration licence that had been awarded to U.S. firm Vanco, accusing it of breaking a number of rules and conditions. But it also voiced concern that Vanco would sell the licences to Gazprom itself.

Prime Minister Yulia Tymoshenko said in May that Naftogaz should explore and extract oil and gas in the Black Sea, but investors could be allowed into production sharing deals giving them what she called "international norms" of 30-40 percent.

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