The Ukrainian government has approved two proposals for conducting competitions for the extraction of oil and gas resources in the west of the country. These pertain to the Mezhyhirsk and Svychan areas, located in the Lviv, Ivano-Frankivsk, and Chernivtsi regions. Cooperation is expected under a production sharing agreement, which means that the investor bears all risks and costs related to geological exploration and field development. In the event of successful extraction, the product will be distributed between the state and the investor according to an agreed formula.
This is reported by Business • Media
Additionally, the company “Ukrnafta” will begin implementing a production sharing agreement (PSA) for hydrocarbon extraction in the Oleska area, which covers the Lviv and Ivano-Frankivsk regions, instead of “Nadra Oleska.” Previously, this area was planned to be developed by the American company Chevron.
In 2013, Ukraine, together with Chevron B. V. Ukraine and “Nadra Oleska,” signed the relevant agreement. It was expected that extraction in the Oleska area would reach between 5 to 10 billion cubic meters of gas annually. The signing of the PSA would also allow for the commencement of shale gas extraction work with a potential of 2.98 trillion cubic meters. However, after the start of Russia’s war with Ukraine in 2014, Chevron decided to exit the project, and its representative office announced the cessation of activities in Ukraine.