Ukraine-Chevron Sign Hydrocarbons Sharing Agreement
KYIV, Ukraine, November 5, 2013
KYIV, Ukraine, November 5, 2013 /PRNewswire/ --
Ukrainian government signed shale gas production-sharing agreement (PSA) with
Chevron of the U.S. and Ukraine's state owned Nadra Oleska. The PSA stipulates
the distribution of hydrocarbons to be extracted at Oleske gas field, reports
The PSA was signed in the presence of the President of Ukraine Viktor
Yanukovych by the Minister of Energy and Coal Industry Eduard Stavytskyi and
representative of Chevron Derek Magness as well as Nadra's Chairman Viktor
Ponomarenko. According to Chevron, the Oleske gas field covers approximately
1.6 million acres.
The new deal is expected to attract billions of dollars of investment into
Ukraine, especially taking into consideration the recent PSA the country
signed in January with Royal Dutch Shell, according to ft.com. The January
agreement secured the Eastern European state with USD 10 billion investment
for the exploration of its unconventional gas deposits. Depending on the
actual amounts of extracted gas, 30 to 60 percent of the developed product
would belong to the country. At the same time the shares of the participating
investors - the Royal Dutch Shell and Ukraine's Nadra Yuzivska - will
constitute two equal parts.
The gas extraction at Yuzivske is expected to begin in 2015. According to the
estimate provided by Shell, Yuzivske field contains about 3-3.5 trillion cubic
meters of gas deposits. Yuzivske and Oleske are expected to provide Ukraine
with up to ten percent of domestically consumed gas by 2020.
Moreover, by the end of 2013, Ukrainian state officials expect to conclude
negotiations with an ExxonMobil-led group of companies concerning the
exploration of hydrocarbons at the Black Sea shelf.
Notably, Ukraine expects that signing of the Association Agreement with the EU
will increase the investment attractiveness of the country's energy sector.
This was stated by President Yanukovych at the plenary session of the Council
of National and Foreign Investors in Kyiv. According to him, harmonization of
Ukrainian legislation with the Third Energy Package of the EU will increase
the competitiveness, transparency and investment attractiveness of Ukrainian
He also stressed that Ukraine's cooperation with the world's leading companies
in hydrocarbon production facilitated the introduction of modern technologies
and experience in Ukraine while also strengthened energy security of the
Contact: For more information, please contact Maryna Khorunzha +380443324784
email@example.com, Project Manager at Worldwide News Ukraine.
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