According to the Energy Information Administration’s estimates published in June, 2013 technically recoverable Ukrainian shale gas reserves constitute 3.6 trillion cubic meters (1,75% of world shale gas reserves). Earlier in 2011 Energy Information Administration has estimated technically recoverable shale gas reserves of Ukraine as 1.2 trillion cubic meters (0.6% of estimated world reserves), and total reserves as approximately 5.6 trillion cubic meters. According to the
Scientific Research Institute “Naukanaftogas” of Naftogas of Ukraine
There are two major deposits of shale rocks in Ukraine, from which an extraction of natural gas is possible, namely Lvov-Lublin basin on the west (extractive shale gas reserves are estimated at the level of 1,47 trillion cubic meters) and the Dnieper-Donets basin on the east (extractive shale gas reserves are estimated at the level of 2.15 trillion cubic meters).
Within the first tender on the right for signing the production sharing agreement for shale gas extraction, which was held in 2012, Shell and Chevron were announced as the winners. Shell won the right for signing the production sharing agreement on the development of Yuzivska area (the area of 7886 km2) on the territory of the Dnieper-Donets basin, and Chevron won the right for signing the production sharing agreement on the development of Oleska area (the area of 6324 km2) on the territory of Lvov-Lublin basin.
On January 24, 2013, the Government of Ukraine has signed a production-sharing agreement (PSA) with Shell Exploration and Production Ukraine Investments (IV) BV and LLC Nadra Yuzovsky. The agreement was signed for the period of 50 years.
Yuzivska area is located in two regions: Donetsk (Krasnolymansky, Slovyansky, Olexandrivsky, Constantynivsky, Artemovsky, Dobropilsky and Yasinovatsky districts) and Kharkiv (Balakleysky, Izyumsky and Barvinkovsky districts).
As of March 2013 Chevron is at the stage of approval of production sharing agreement by local authorities.
Oleska area is located in Lviv (Busky, Zhidachivsky, Zhovkivsky, Zolochevsky, Kamenka-Buzky, Mykolaivsky, Peremyshlyansky, Pustomytivsky, Sokalsky districts) and Ivano-Frankivsk regions (Tlumatsky, Galytsky, Horodenkibsky, Rohatynsky districts).
Besides, Italian oil and gas company ENI has
According to a
Thus, the volume of shale gas extraction will depend on the investments in drilling activities, the development of the regulatory framework and confirmation of existing reserves. Under favorable conditions, the volume of shale gas extraction could reach 10 billion cubic meters over the next decade.
Yuzivska area location. Source: shell.ua Yuzivska area location. Source: shell.ua Oleska area location Oleska area location