SHARE

Ukraine’s Ecology Minister Oleh Proskuryakov said the country is set to sign a $10 billion shale production-sharing agreement with Chevron next.

Proskuryakov stated the exploration and extraction deal located at the Olesska site in western Ukraine, would be signed next Tuesday at a regional economic forum in the capital Kiev.

Officials in western Ukraine made way for the deal with a majority vote in favor, overcoming opposition from local lobby groups concerned at possible ecological damage from the project.

“The government has approved the draft agreement which will be signed within the framework of the investment forum on Nov. 5 in Kiev,” said Proskuryakov.

The deal subjects Chevron to an initial investment of $350 million for exploratory work aimed at establishing the commercial viability of the Olesska reserves.

Shale exploration forms part of plans by Ukraine to diversify its energy sources to ease dependence on costly natural gas imports from Russia.