• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 11 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents * Too late now
  • 1 day Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 3 hours Only thing that moves oil price up is an attack on Tankers or Oil Facilities (Staged or real?)
  • 14 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 2 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 4 hours Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 7 hours With Global Warming Greenland is Prime Real Estate
  • 7 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 2 hours What to tell my students
  • 17 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 1 day US Petroleum Demand Strongest Since 2007
  • 20 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 11 hours Get First Access To The Oilprice App!
Alt Text

Has US Shale Gas Production Peaked?

Problems are mounting for U.S.…

Alt Text

Is Big Oil's Natural Gas Bet Turning Sour?

Big Oil has been piling…

Alt Text

Turning Natural Gas Into Fuel Just Became Cheaper

The current abundance of natural…

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