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Ukraine, Chevron sign hydrocarbon sharing agreement

Ukraine, Chevron Ukraine BV, a subsidiary of Chevron Corporation (USA) and Nadra Oleska LLC have signed an agreement on the distribution of hydrocarbons which are produced within the Oleska field in western Ukraine.

Ukraine's Minister of Energy and Coal Industry Eduard Stavytsky told this to reporters after a plenary session of the Council of Domestic and Foreign Investors in Kyiv on Tuesday.

The agreement has been signed by Minister of Energy and Coal Industry of Ukraine Eduard Stavytskyi, CEO of Chevron Europe Exploration and Production Derek Dupree Magness and Chairman of the Board of NJSC Nadra Ukrayiny Viktor Ponomarenko.

In February 2012, Ukraine announced tenders for signing production sharing agreements on the Yuzivska (Donetsk and Kharkiv regions) and Oleska (Lviv and Ivano-Frankivsk regions) areas with reserves of shale gas. In May 2012, Chevron and Shell were declared the winners of the tenders to sign production sharing agreements for hydrocarbon extraction on the Oleska and Yuzivska areas.

Estimated resources on the Oleska area are three trillion cubic meters of gas.

It is expected that Chevron's investment in the domestic economy only at the first stage of the agreement implementation will amount to USD 350 million, and USD 10 billion during the project implementation.

Adapted from Ukrinform