Chevron to Quit Ukraine Shale Gas Project

Chevron to Quit Ukraine Shale Gas ProjectChevron to Quit Ukraine Shale Gas Project

The US Chevron has notified the Ukrainian government about the intention to quit the project to produce hydrocarbons in Ukraine’s Olesska field, press service of the American company told Itar Tass.

The press service did not specify reasons for the decision.

In November, Ukraine’s government informed Chevron it had fulfilled all conditions necessary for the US company to begin exploration and production of shale gas in Ukraine’s west.

In November 2013, Ukraine’s government, Nadra Olesskaya and Chevron signed a production sharing agreement on production of hydrocarbons in the Olesska field (in Ukraine’s west).

Chevron was expected to invest about $350 million in exploration of shale gas. Under the production sharing agreement, Chevron within five years was to complete geology exploration and drilling.