Ukraine plans to produce 5 to 10 bcm of gas a year on Oleska field, says Stavytsky
Ukraine plans to produce from 5 to 10 billion cubic meters of gas per year on the Oleska field (Lviv and Ivano-Frankivsk regions) under a production sharing agreement (PSA) signed with Chevron Ukraine B.V. and Nadra Oleska LLC, Minister of Energy and Coal Industry Eduard Stavytsky has said.
"Under the basic scenario, it is about 5 billion cubic meters of gas per year, and according to the optimistic scenario – 8-10 billion cubic meters," he said at a briefing on Tuesday.
Stavytsky reported that at the first stage [the next two or three years] Chevron would spend $350 million on exploration and drilling.
"Ukraine will receive at least 30% from production, there we have the basic and optimistic scenarios. Given these scenarios, the share of the state will increase," said the minister.
According to the minister, the cost of this gas will be three times cheaper than the current purchase of Russian gas for Ukraine. At the same time, he said it is expected that the production of 1,000 cubic meters of gas will be about $80, but the final figure will be determined after exploration.
"It will be a lot cheaper [the price of shale gas] than the price at which we now buy gas from our partners. In my opinion, it will be at least three times cheaper," he said.
He also said that Chevron is constantly improving its production technologies, primarily environmental issues and the possibility of increasing natural gas output.
