Ukraine is successfully implementing ambitious plans to develop its domestic gas industry. The Cabinet of Ministers has approved a draft Production Sharing Agreement (PSA) with the US company Chevron, which plans to invest over 10 billion USD in the development and extraction of gas from shale rock at Olessky gas field (Lviv and Ivano-Frankivsk regions), the Information-Analytical Bulletin of the Cabinet of Ministers informs.

According Prime Minister Mykola Azarov, if cooperation with the American investor proves successful, Ukraine may repeat the experience of the United States, where, thanks to extraction of own shale gas, the price of natural gas on the domestic market fell from 460 USD for 1,000 cubic meters in 2007 to the current 110-120 USD for 1,000 cubic meters. 

The project will help create up to 15,000 jobs; the annual production of shale gas will reach 8-10 billion cubic meters.
Government experts say the agreement with Chevron demonstrates the effectiveness of cooperation between the Cabinet and potential investors in Ukraine's gas extraction market. Other potential investors include major international energy companies that intend to invest and introduce new innovative technologies for gas field development and personnel management, while adhering tp social and environmental standards.

The British-Dutch company Shell has already started developing the Yuzovsky gas field in Donetsk and Kharkiv regions (forecasted resources  4.05 trillion cubic meters of gas, including shale and tight sands. The investments at exploration stage - 1.6 billion UAH, and 30 billion USD - during the commercial development). The PSA was signed on January 24, 2013 at the World Economic Forum in Davos, with the participation of President Viktor Yanukovych. 
This month, the Italia’s Eni agreed with the Cabinet on gas extraction in shallow waters of Ukrainian Black Sea shelf. In addition, in summer of 2014, Eni expects to start exploration of shale gas in the Volyn region.

Raising the investment attractiveness of the oil and gas industry is one of the main challenges faced by the government to improve the efficiency of the national economy.
Eduard Stavitskiy, Ukraine's Energy and Coal Industry Minister, says efforts by government will raise around 3 billion USD in 2014 through 2017 for the exploration of gas fields. "This is a powerful impetus to fully meet the country's own gas production in future," he said.

Ministry experts point out that exploration and production of conventional and unconventional hydrocarbons with involvement of international companies help introduce advanced technologies and expertise, as well as ensure energy security of our country.

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