This article discusses a #tender for development of #shale gas #extraction project in #Lviv and #Ivano-Frankivsk regions of Ukraine as well as agreement on shale gas extraction on #Yuzivska plot in #Kharkiv and #Donetsk regions with #Yuzgaz BV, a #Dutch company.
Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities.
National Joint Stock Company “Nadra Ukrayny” announced a tender for development of shale gas extraction project on Oleskivska plot in Lviv and Ivano-Frankivsk regions of Ukraine. The Chairman of “Nadra Ukrayny” announced that an interdepartmental commission will be formed in order to develop the rules for participation in a tender.
We note that in 2013 the agreement was reached with Chevron on development of shale gas extraction project on Oleskivska plot. However, in 2014 the company unilaterally terminated the agreement and decided to leave Ukrainian market.
Under some estimation, there are approximately 3 trillion cubic meters of shall gas in Oleskivska plot. Annual gas production in this area can reach 5-10 billion cubic meters.
In addition, “Nadra Ukrayny” announced that a tender for development of shale gas extraction project on Yuzivska plot in Kharkiv and Donetsk regions was won by Yuzgaz BV, a Dutch company founded by Emerstone Energy, a part of Emerstone Capital Partners group. Under the tender documentation, Yuzgaz BV will invest around USD 200 million in geological study of the plot and has to drill or reconstruct at least 15 gas wells on the plot. Now the Government of Ukraine has 90 days to officially approve the agreement.
The size of Yuzivska plot is 7886 thousand square kilometers and shale gas resources are estimated at 10 trillion cubic meters. Annual gas production in this area can reach 10-20 billion cubic meters.
We note that initially Yuzivska plot was to be developed by Shell. However, due to military actions in Eastern Ukraine Shell decided to leave the project.
Image by MagentaGreen – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=37417557