Ukrainian government approves shale gas draft deal with Chevron

The Ukrainian government has approved a draft product sharing agreement with the U.S.’ Chevron to produce shale gas in the western part of the country, RIA Novosti reported on Tuesday.

The government has assigned Energy and Coal Industry Minister Eduard Stavitsky with the right to sign the agreement with Chevron, with the signing expected to take place later on Tuesday.

Chevron won at a tender to develop the Olesskoye shale gas deposit in the western Ukraine with probable resources of 3 billion cubic meters in May 2012.

Heavily dependent on imports of Russian gas, Ukraine has attempted revise a 2009 agreement with gas giant Gazprom, which it says sets excessively high prices. Kiev is trying to find alternative sources of gas and increase its own production of shale gas.

Ukraine will reach full gas independence from Russia by 2020, President Viktor Yanukovich said on Tuesday.

“Large-scale projects with Shell and Chevron…the agreement with the latter will be signed today and will allow Ukraine to reach full gas independence by 2020. Under a best-case scenario, we may even be able to export the energy carriers,” Yanukovich said.

SOURCE: PRIME, 2013

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