On Tuesday, Ukraine announced its second shale gas production-sharing deal with a international energy producer in a year.
Chevron (CVX) has inked an agreement to explore and develop shale gas reserves at the country’s Olesska field, which lies in the western region of Ukraine. The deal is worth a reported $10 billion. In January, Ukraine struck a deal with Royal Dutch Shell (RDS.A, RDS.B) to do similar work at a site in the eastern portion of the country, Reuters notes.
Under the agreement, Chevron will invest $350 million to assess the feasibility of extracting gas from the shale reserves.
The deals with Chevron and Royal Dutch Shell could boost Ukraine’s gas production by between 11 billion and 16 billion cubic meters within five years. The country, which borders Russia, is looking to reduce its reliance on imported gas from its much-larger neighbor.
Shares of Chevron were flat in Tuesday pre-market trading.