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Kyiv Signs $10 Billion Shale-Gas Deal With Chevron

Ukrainian President Viktor Yanukovych (center) at a meeting in Kyiv on November 5 to sign the Chevron deal.
Ukraine and the U.S. energy company Chevron have signed a $10 billion shale-gas deal that Kyiv says will lessen its dependence on Russian energy.

The production-sharing agreement signed in Kyiv on November 5 allows Chevron to explore and develop shale-gas deposits in the western Lviv and Ivano-Frankivsk regions.

Ukrainian President Viktor Yanukovych said before the signing ceremony that large-scale deals with Chevron and Shell "will enable Ukraine to fully meet its natural-gas needs by 2020."

Ukraine signed deals earlier this year with Shell and ExxonMobil.

Chevron says it will invest some $350 million in exploring sites in western Ukraine and that its investment in the project will eventually total some $10 billion.

The three sites to be exploited by the deals signed with the Western energy companies are estimated by Ukrainian officials to contain some 3 trillion cubic meters of gas.