5 things you need to know about shale gas in Ukraine

Ask any shale gas operator or stakeholder in Ukraine (e.g. Chevron or Eurogas), and there are only a handful of questions anyone really wants to know about Shale Gas in Ukraine. I’ve narrowed it down to the following 5 sets of questions:

1) How large is the opportunity? What is the prospectivity of the plays in Ukraine? For example, what is the future prospect for the  Slobozhanske shale reservoir?

2) What are the realities of exploration in the Ukraine? What infrastructure, supply chain and services are needed to commercialise Ukraine’s shale gas resources?

3) Given gas price markets and costs involved, can shale exploration in Ukraine be profitable?

4) What are the licensing, fiscal and regulatory regimes? Can they be trusted?

5) Can Shale move Ukraine towards self-sufficiency? How will Shale exploration affect relations with Russia?

These are some of the thoughts I’ve collected while speaking to shale gas operators in Ukraine like Eurogas. Similar questions were posed to me by Oleg Proskuriakov, Head of State Service for Geology and Mineral Resources of Ukraine – both of whom will be debating these at length at the Shale Gas World Europe Congress 

Shale gas exploration in Ukraine is in its infancy. If there were clear cut answers to the above – I have no doubt there would be an explosion of interest and people would take it a lot more seriously. What do you think?