Ukraine mulling PSCs with energy giants

17:20, 13 November 2012
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Ukraine is planning to sign production-sharing contracts (PSCs) for gas exploration with three multinational conglomerate, Environment and Natural Resources Minister Eduard Stavitsky said Tuesday, according to Xinhua.

At a news briefing, the official said he expects all three contracts, respectively with Royal Dutch Shell, Chevron Corp and Exxon Mobil, to be signed "in early December."

The deals will cover Skifska area in the Ukrainian part of the Black Sea in the south, the Yuzovska gas field in eastern Ukraine and the Olessky field of Ukraine's west, Stavitsky said.

At the moment, he added, the government is working to harmonize the details of the contracts with the local authorities of Lvov and Ivano-Frankovsk regions, where Olessky field is situated.

In May, Ukraine picked Shell and Chevron as partners to explore the Yuzovska gas field and the Olessky field, respectively with estimated reserves of over 4 trillion and 2.98 trillion cubic meters.

In August, Exxon Mobil and Shell won a bid to explore oil and gas reserves in Skifska area, which is estimated to have reserves of 200 to 250 billion cubic meters of natural gas.

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