Development of the Black Sea Shelf as a Strategic Priority for the Country's Energy Independence

Oct 22, 2020 | Category: Official
Development of the Black Sea Shelf as a Strategic Priority for the Country's Energy Independence

The Naftogaz Exploration and Production Division continues to develop a strategy for increasing its resource base. Last week, the draft new strategy was brought up for discussion by the Expert Board.

The strategy is based on key areas with a resource potential of over 100 billion cub. m. The key areas are as follows: follow-up exploration of existing and new fields (green fields), exploration of gas deposits in dense rocks and on the Black Sea shelf, intensification of work at great depths and in the Carpathian region. The company also sees potential in the development of promising areas under production sharing agreements (PSAs), the conclusion of which is still ongoing.

This is the second meeting of the Expert Board. At the first meeting, which was held in August, Naftogaz gathered experts' opinions on the directions of development of Ukraine's gas production industry, which formed the basis of the draft new strategy.

“We analyzed all the recommendations and pieces of advice of the Expert Board's representatives and presented the composed draft strategy to field experts. We and our partners have a common vision that Ukraine does have a potential, which needs to be realized. This requires prompt, decisive action of all stakeholders, because it is no longer possible to compensate for the natural decline with the existing resource base alone,” said Oleksandr Romanyuk, Director of the Exploration and Production Division.

The experts paid considerable attention to the development of the Black Sea shelf, as one of the areas with the highest potential.

“The issue of the earliest possible start of the development of the Black Sea shelf should be addressed at the government level. Delaying this process entails the loss of both self-produced gas and revenues for the country's economy in the form of investments, taxes, etc. Naftogaz can become a reliable partner of the state in this project, because it has the vital offshore development skills and capacity to attract finance and technology,” said Illya Rybchych, a member of the Expert Board, Ukrainian scientist, merited worker of the oil and gas industry.