ExxonMobil Signs Unconventional Gas Deal with Ukraine

ExxonMobil Corporation and Ukraine’s state energy firm Naftogaz Ukrainy have signed a preliminary agreement for cooperation in the development of gas from unconventional sources.

The agreement envisages cooperation in the sphere of exploration and development of shale gas, tight sandstone gas and coal-bed methane.

Naftogaz Deputy Chairman of the Board Vadym Chuprun says that Exxon Mobil will be active in exploring unconventional gas opportunities in the deposits in Ukraine’s western provinces and the Dnieper-Donets depression.

In February the two parties signed a memorandum of cooperation to analyze reserves of coal bed methane, shale gas, tight gas and other unconventional resources.

The deal follows an earlier agreement in June between TNK-BP Ltd. and Ukraine.

TNK-BP plans to invest $1.8 billion in unconventional gas projects in Ukraine over the next six to seven years, allowing for production of up to 3 billion cubic meters of gas a year.