MOSCOW (MRC) -- Chevron has as expected finally signed on the dotted line for its USD10 billion deal with Ukraine for the Olesska shale production sharing agreement, said Upstreamonline.
Ukrainian president Viktor Yanukovych and Chevron regional president James Johnson were on hand for the signing at the presidential palace in Kiev.
Yanukovych said that the deal - along with a similar USD10 billion pact inked with Shell in January for the eastern Yuzivska block - would introduce modern technologies and experience to Ukraine as well as strengthen its energy security.
"Implementation of large-scale projects with Shell and Chevron will have let Ukraine satisfy its gas needs completely and, under the optimistic scenario, export energy resources by 2020," he said in remarks posted the Ukrainian presidency website.
Chevron had initially agreed with the Ukrainian government in May 2012 on a 50-year licence for the acreage in western Ukraine, but wrangling over regional approvals has slowed the deal’s progress.
In August, deputies in the Ivano-Frankovsk region rejected the original terms of the licence before agreeing to amended terms a month later that granted regional authorities a 10% slice of state revenues from Olesska.
Last month, deputies in the Lviv region also accepted the new PSA, clearing the final hurdle for the agreement to be signed.
Ukraine's State Geological Service estimates the reserves of gas-rich Olesska could total between 800 billion and 1.5 trillion cubic metres.
MRC