Eni, Cadogan Start Environmental Works on Shale Gas Deposits in Ukraine

Zakhidgazinvest LLC will examine the environmental state of areas for shale gas exploration, reports the press service of Volyn Regional State Administration.

During the first phase, Zakhidgazinvest (Westgasinvest) intends to explore the area in Ivanychi district of the Ivano-Frankivsk region. "With good organization and proper preparation, the work on the exploration of shale gas deposits could begin in the summer of 2014," said the administration.

In October 2012, Cadogan Petroleum Plc and Nadra Ukrainy sold a 50.01% stake in unconventional gas joint venture Zakhidgazinvest to Eni S.p.A. Cadogan retained a 15 per cent stake while Nadra Ukrainy holdings dropped to a 34.99 per cent stake.

The deal followed a cooperation agreement signed between Cadogan and Eni in 2011, under which the two companies agreed to invest up to $55 million (USD) in shale gas exploration and production in Ukraine.

Eni gained access to nine unconventional licences with a total area of 3,800 square kilometers western Ukraine in the shale prospective Lviv Basin, which Cadogan describes as being a continuation of the Lublin Basin in Poland and "one of the most attractive basins in Europe for the exploration of unconventional gas."

According to the State Service of Geology and Mineral Resources of Ukraine, Eni has provided an exploration program for 2012-2015 with plans to implement four exploration clusters, in each of which vertical and horizontal drilling and hydraulic fracturing will be applied.

Related Reading: Ukraine's Leading Producers: "How we do it"

The Future of Global Shale Gas: Earning the Social License to Operate - Natural Gas Europe White Paper - HERE