Gas Market: Ukraine Looking for Foreign Investors

Ukraine has identified strategic directions of gas production development which in the long run will help reduce the country’s dependence on imported energy products. In particular, the country needs $3-5 billion for gas production development in the next four years. Therefore, the Naftogaz Group is now ready to attract Ukrainian and foreign investors to jointly implement these projects. Director of the Exploration and Production Division of the Naftogaz Group Oleksandr Romaniuk made a corresponding statement at the 5th International Oil and Gas Conference in Kyiv, held by the Newfolk Oil and Gas Consulting Center.

Romaniuk stated that Naftogaz continued to elaborate a strategy to increase the resource base underpinned by the study of areas with the resource potential exceeding 100 billion cubic meters.

The priority areas mentioned are the following:

• Additional exploration of existing and new deposits
• Development of gas deposits in dense rock
• Exploration of the Black Sea shelf
• Intensification of works at great depths
• Study of the Carpathian region prospects
• Development of promising areas within the framework of production sharing agreements (PSAs), the conclusion of which is currently underway.

“We see an opportunity to add 30-50 billion cubic meters of gas reserves economically viable for production by the end of 2024. This is the amount needed to overcome resource starvation and natural decline. To achieve this goal, it is necessary to invest $3-5 billion. Of course, neither Naftogaz nor the country has such significant funds. So, we are ready to consider partnerships with companies that are able to provide additional investment, technology and experience. We need synergy that will ensure the rapid and efficient implementation of strategic projects and acquisition of reserves, which could be further converted into production,” Romaniuk added.

Natalia Tolub