The Market Square in Ivano-Frankivsk

On Friday the government of Ukraine moved a step forward with a new shale deal for the country when a regional council approved a draft for a production-sharing agreement with Chevron.

Officials in the western Ivano-Frankivsk region sent back the draft a month ago, emphasizing guarantees that the environment would be protected during exploration. They are also looking for a commitment to allocate 10% of any gas produced for consumption in the local market.

Interfax news agency said officials had voted 62-to-1 in favor of an amended government draft.

“This is an absolutely positive outcome, Ivano-Frankivsk has given its go-ahead for the project. Now it’s the turn of Lviv,” said Fuel Minister Eduard Stavitsky.

The approval of a second regional council in the neighboring Lviv region is required before the Ukraine government can sign an agreement with Chevron.

For Chevron, the deal will allow it to explore the Olesska shale field.

Royal Dutch Shell has already signed a $10 billion deal for shale exploration and extraction at the Yuzivska field in the east of Ukraine.

In addition to shale gas exploration, Ukraine is hoping to find energy sources through off-shore exploration and liquid gas deliveries from other suppliers.


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