Ukraine Signs Memorandums on Shale Gas

Ukraine has signed five memorandums with foreign companies on cooperation in the production of shale gas.  The companies were not specified.

Energy and Coal Industry Minister Yuriy Boiko has said."We have currently signed five memorandums with leading companies that have relevant experience. We have certain environmental problems related to population density (at the shale gas fields), and we will take this into account when granting the licenses [for the development of shale gas fields)," he said.

Ukrainian Environment Minister Mykola Zlochevsky said in March that a tender for the production of shale gas at two fields in Ukraine would be conducted in mid-2011; the 6,300-square-kilometer Oleska area (Lviv region, western Ukraine) and the 8,000-square-kilometer Yuzivska area (on the border between Kharkiv and Donetsk regions, eastern Ukraine).

Zlochevsky noted that shale gas reserves in the Donets Basin were estimated at 11.3 trillion cubic meters, in the Central Basin - eight trillion cubic meters, in Volyn and a part of Podillia - over three trillion cubic meters, and an additional at least eight trillion cubic meters of shale gas.

Earlier this month Boyko said that Ukraine expected to sign contracts with ConocoPhillips, Chevron Corp. and Halliburton aimed at tapping natural gas and shale gas deposits in the country.

Shell, TNK-BP, ExxonMobil, as well as domestic investors, have also been reported to be interested in the production of unconventional gas in Ukraine.