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Ohio Utica Shale

Ukraine finalizes shale gas deals with Chevron, Exxon Mobil

By Bob Downing Published: November 5, 2013

From Bloomberg News today:

Ukraine announced natural gas deals with Chevron Corp and Exxon Mobil Corp in a push to cut costs by two-thirds and reduce its dependence on Russia.

The Ukrainian government signed a production-sharing agreement with Chevron for extraction of shale gas in the Oleske field, Energy Minister Eduard Stavytskyi said today at a press conference in Kiev.

Another production-sharing agreement with an Exxon-led group for exploring the Skifska field in the Black Sea may follow by the end of the month, he said.

Ukraine, dependent on expensive Russian gas imports for more than 60 percent of its needs, is accelerating efforts to diversify supply. Royal Dutch Shell Plc signed a production- sharing agreement in January to develop shale in the Yuzivska field in the eastern part of the country.

“The cost of gas production will be at least three times lower than what Ukraine is paying for the imports,” Stavytskyi told journalists during the press briefing.

Representatives of Exxon and Chevron weren’t immediately able to comment when Bloomberg News made calls to their offices in Kiev.

Chevron will initially invest $350 million in geological surveys and then “billions of dollars” as it plans to drill at least 2,000 wells, the minister said. The production could yield 5 to 10 billion cubic meters of gas a year, he estimated.

Ukraine has been trying to renegotiate a gas contract with Russia since 2010, saying it pays the highest prices in Europe. The two countries have not reached an agreement, and Ukrainian President Viktor Yanukovych had said the nation will seek to enter a free-trade agreement with the European Union.

The Ukrainian government has also recently met with representatives of Eni SpA and Electricite de France SA, who have also expressed interest in a production-sharing agreement for exploring the shallow shelf of the Black Sea, Stavytskyi said.



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Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.