Ukrnafta will begin geological exploration on the Oleska oil and gas block, located in the Lviv and Ivano-Frankivsk regions—a territory previously held by U.S. energy giant Chevron. The announcement was made by the state-owned company’s press service.
Background
Ukrnafta recently received official approval to develop the Oleska gas block. The company has signed a production sharing agreement (PSA) with the Ukrainian government for operations on this territory.
Initial exploration activities are already underway on the 6,324 square kilometers of potentially hydrocarbon-rich land, according to the statement.
Why it matters
- In addition to conventional oil and gas reserves, the Oleska block is also expected to contain unconventional resources, such as shale gas and tight gas.
- Ukrnafta’s resource base will significantly grow—from the current 2,125 square kilometers of producing fields to a total of 8,449 square kilometers with the addition of the Oleska area.
The company notes that it already operates key infrastructure near the Oleska block, which will enable efficient project development.
Context
In 2014, Chevron Ukraine B.V. and Nadra Oleska LLC held a special license to develop the Oleska hydrocarbons block. At the time, projected annual gas output was estimated at 8–10 billion cubic meters. However, Chevron unilaterally withdrew from the project that same year and later announced its complete exit from Ukraine.
