Ukraine and Energy Giants Move to Action in Gasfields

Ukraine is about to complete production sharing agreements (PSAs) with energy giants Exxon, Shell and Chevron, a government minister has said.

The PSAs will relate to shale gas and offshore fields, news media reported.

Speaking at a press conference in the capital, Kiev, Eduard Stavytsky said that he expected the ink to be on contracts early in December. Mr Stavytsky is the Minister for Environment and Natural Resources. The Minister said Exxon and Chevron had indicated they would begin major works in the licensed areas as soon as the PSAs were completed.

At an earlier press conference, Mr Stavitsky had indicated good progress in the partnerships. "I want to emphasize that at the meeting with President of Ukraine Yanukovych in New York in late September, the heads of ExxonMobil and Chevron praised the quality of Ukrainian legislation on production sharing agreements and confirmed plans this year to conclude agreements with the Ukrainian government and promptly begin large-scale work on the license areas.”

 Last month Shell started drilling its first exploration well Beliayivske-400, in Kharkiv oblast.  On August 15, a consortium comprised of ExxonMobil, Shell, Petrom (based in Romania, a subsidiary of Austria's OMV) and NJSC Nadra Ukrainy won the PSA tender for the Skifska oil and gas field on the Black Sea shelf.

Ukraine is attempting to become more self-sufficient in its power supplies. Currently it imports around 60% of its gas from Russia.