On Wednesday, the Ukrainian Government is going to agree a PSA with Chevron

On Wednesday, the Ukrainian Government is going to agree a PSA with Chevron for shale gas production at the Olessky site in the west of the state, the Premier of the Ukraine, N. Azarov says.

Under the contract, Chevron will invest $350 million to shale gas exploration in the Lvov and Ivanovo-Frankovsk regions. The total investment to gas production should be over $10 billion.

According to the basic scenario, annual gas production can be 8-10 billion cubic m of gas. If the projects for gas prospecting from the non-traditional sources are successful, then the Ukraine can repeat the success of the USA that educed the internal gas price from $460 per 1,000 cubic m in 2007 to $110-120 now because of shale gas production. Within the coming 10 years, the Ukraine can turn from gas importer to exporter in Europe..