Ukraine Sees Additional PSA's This Year

Ukraine expects that four additional production-sharing agreements (PSAs) for natural gas to be signed before the end of 2013.

"The three competitions held last year for production-sharing agreements were won by Shell, Chevron, and Exxon Mobil. We plan to conclude at least four additional production sharing agreements, in addition to the two existing production sharing agreements, before the end of this year," said Eduard Stavytskyi, Minister of Energy and the Coal Industry as quoted by the ministry press service.

Stavytskyi forsees Ukraine becoming a net exporter of natural gas by the middle of the next decade.

Ukraine's recent conclusion of its production sharing agreement (PSA) with Shell for the Yuzivske shale-gas deposit in the Donetsk and Kharkiv regions was a big milestone, according to Vitaly Radchenko, Counsel, CMS Cameron McKenna."The Shell PSA being concluded proves we can still go forward without specific and dedicated legislation."

Recently, Environment and Natural Resources Minister Oleh Proskuriakov said that Ukraine will probably sign a production sharing agreement with Chevron over development of Olesska (Olesske) shale gas deposit, awarded in May 2012, by June 1st of this year

August 2012 the Ukrainian Government had awarded the offshore Skifska block to the group of investors led by ExxonMobil and including Shell, OMV Petrom and the Nadra Ukrayny national joint-stock company.

In a positive development this February, Ukraine's Cabinet of Ministers decided to reverse the termination of the product sharing agreement with Vanco International (see: Ukraine E&P: The Tale of Vanco)