45 Bln Cubic Meters of Gas Production Is Realistic for Ukraine, ExxonMobil

  45 Bln Cubic Meters of Gas Production Is Realistic for Ukraine, ExxonMobil

  PR Newswire

  KYIV, Ukraine, July 12, 2013

KYIV, Ukraine, July 12, 2013 /PRNewswire/ --

According to the ExxonMobil's estimation of Ukrainian offshore and continental
gas reserves, the country may achieve annual gas production of 45 billion
cubic meters by 2020, stated Kevin Biddle, the company's European exploration
director, in his interview with kommersant.ua. He explained interest of
ExxonMobil in developing business in Ukraine by its oil, gas, shale gas, and
coalbed methane reserves, as well as positive forecast for the extraction
price.

"This allows us to convince the shareholders that investment in this country
can generate return," said Biddle. Should ExxonMobil sign the production
sharing agreement with the Ukrainian government, the initial investment will
amount to USD 325 million. The investment may reach billions of dollars in
case the company finds gas and oil, added Biddle.

Currently, ExxonMobil is preparing to explore deep marine gas field Skifske in
the Black Sea. So far, the company has the data of two-dimensional exploration
of the field and will be able to evaluate deposits after the data of
three-dimensional exploration is available. In August 2012, Shell, ExxonMobil,
Romanian OMV Petrom, and Ukrainian state company Nadra received joint rights
to develop underwater deposits at the site.

Ukraine's Skifske gas field is adjacent to Romanian Neptun block, developed by
ExxonMobil and OMV subsidiary Petrom. The deposits at Neptun's Domino-1 field
are estimated at 42 to 84 billion cubic metres. Ukraine has as high a
potential as Romania does, reckoned Biddle.

Ukraine is putting effort into developing domestic energy resources in order
to increase the country's energy security. On July 11, 2013, Ukraine's state
gas managing company Naftogaz announced the discovery of a large oil field in
the eastern part of the country. The minimum deposits are estimated at 13
million tons.

In May 2012, Royal Dutch Shell and Chevron obtained the right to develop
Ukrainian shale gas fields Yuzivske (eastern Ukraine, Donetsk oblast) and
Oleske (western Ukraine, Lviv oblast), respectively. The fields are expected
to provide Ukraine with up to ten percent of domestically consumed natural gas
by 2020.

Ukraine's 2012 annual gas consumption was 55.6 billion cubic meters, according
to Dragon Capital. In September 2012, PM Mykola Azarov stated that Ukrainian
domestic gas consumption would be cut in two by 2013.

Contact: For information, contact Maria Ivanova +380443324784
news@wnu-ukraine.com, Project Manager at Worldwide News Ukraine.
 
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