• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 2 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 2 hours Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 10 hours Climate Change Consensus Shifts in Wind, But Gas Is Still the Right Move
  • 11 hours World oil demand will keep growing until 2030, climate-damaging emissions longer, says IEA
  • 2 mins EU has already lost the Trump vs. EU Trade War
  • 5 hours Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 3 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 1 hour Trump On Farage's Radio Show ...
  • 1 hour Does .001 of Atmosphere Control Earth's Climate?!
  • 6 hours Iran's Master Plan?
  • 3 mins China's Renewables Boom Hits the Wall
  • 5 hours Saudi Aramco IPO Will Not Save Kingdom

Breaking News:

Oil Rebounds On Surprise Crude Draw

Alt Text

Kurdistan’s Massive Gas Reserves No One Knows About

The announcement of independent driller…

Alt Text

Has US Shale Gas Production Peaked?

Problems are mounting for U.S.…

Joao Peixe

Joao Peixe

Joao is a writer for Oilprice.com

More Info

Premium Content

Ukraine Approves Major Shale Deal with Chevron

The government of Ukraine has approved a draft agreement with Chevron Corp. for shale gas extraction in the country’s western region in a deposit that could produce as much as 10 billion cubic meters of gas annually.

Chevron won the tender to explore the Olesska deposit in the Lviv region in February 2012, and the signing of the agreement is set for tomorrow, 5 November.

For Chevron, it means exploration in one of the most promising shale plays in Europe.   

For Ukraine, it could mean the creation of up to 15,000 new jobs and tens of billions of dollars in revenue. It could also result in new competition for Ukraine’s shale plays if junior exploration and production companies catch on to the potential here.

Related article: This week in Energy: The Coming Ukrainian Shale Boom

The government’s production-sharing agreement with Chevron provisions an initial investment of $350 million in exploration work to establish commercial viability at Olesska, which is a 5,260 square kilometer play. Total investments, including extraction after exploratory drilling, could reach $10 billion.

It was a hard-won battle that saw signing delayed due to opposition from local lobby groups who had expressed concerns over the possible environmental impact of fracking in Olesska—but regional lawmakers finally acquiesced.

Investment is picking up in Ukraine, as Kiev works to loosen the stranglehold Russia’s Gazprom has on the country and to build its energy independence as well as that of Europe as a whole.

In January, Kiev signed a production-sharing agreement with Royal Dutch Shell, which pledged to invest up to $10 billion to explore Ukraine’s unconventional gas potential.

Kiev is also hoping to close negotiations by the end of this year with a consortium led by ExxonMobil—again including Shell—to explore for oil and gas offshore Ukraine in the Black Sea.

Related article: British Draft Report Dispels Shale Gas Myths

There are three key shale plays Ukraine is looking to develop with the help of foreign companies. Together, the three plays contain an estimated 3 trillion cubic meters of gas.

The exploration deal comes as both Moscow and Kiev raise the stakes, with Moscow threatening Kiev over unpaid gas bills and sparking fears of another gas war that could leave Europe in the cold, and Kiev preparing to sign association agreements with the European Union later this month.

By. Joao Peixe of Oilprice.com




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play