U.S. Producers to Assist Ukraine in Quest for Energy Independence

August 14, 2013 08:42 AM

Ukraine is on the receiving end of a leg up from two U.S. energy producers who hope to assist that nation increases its energy independence. Newly appointed U.S. Ambassador to Ukraine Geoffrey R. Pyatt has noted Ukrainian energy independence as a priority on his agenda and with the help of Chevron and ExxonMobil, Ukraine may find itself more closely aligned with 'institutional Europe', and better able to take advantage of its own shale resources.

"Both companies... want to bring the best of American technology, American know-how and American capital to the Ukrainian energy sector in a way that would be very good for the Ukrainian people and will help Ukraine to advance its goal of greater energy independence," Pyatt noted.

The details are still a work in progress, but, given the approval of the government of Ukraine, ExxonMobil is prepared to invest up to USD $325 million as part of a production sharing agreement.

In an effort to develop domestic gas resources, Ukraine cooperates with global energy companies which will develop gas deposits in western and eastern regions of Ukraine, as well as in the deep marine shelf of the Black Sea. Namely, Shell won the right to explore gas in Yuzivske gas field in Eastern Ukraine in May 2012. In August 2012, Shell, ExxonMobil, Romanian OMV Petrom, and Ukrainian state company Nadra received joint rights to develop underwater deposits at Ukrainian deep marine shelf field under the Black Sea.

As Ukraine looks to cozy up with the European Union and forge its own post-U.S.S.R. identity, U.S. producers are lining up to assist with extraction and exploration technologies. A U.S. state department member noted in February that Ukraine is acting more 'E.U.-like' all the time. Increased energy independence in the Ukraine would mean a decreased reliance on Russian natgas and has the potential to fuel not just an energy revolution, but true social change.

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