Ukrnafta gets permit to develop major oil field

Business

19 May 2025, 02:19 PM

The State Geology and Subsoil Survey of Ukraine granted Ukrnafta a special permit to develop the Oleska area in Lviv and Ivano-Frankivsk regions, previously held by Chevron Ukraine and Nadra Oleska, according to an order dated May 12, 2025.

In April 2025, the Cabinet of Ministers of Ukraine approved the transfer of 100% of rights and obligations of Nadra Oleska LLC to Ukrnafta, the country’s largest oil and gas company.

Nadra Oleska LLC was previously a joint venture between the state-owned Nadra Ukrainy (90%) and SPK-Geoservice (10%), holding Ukraine’s stake in a Production Sharing Agreement (PSA) with Chevron Ukraine B.V. signed in 2013 for developing the Oleska hydrocarbon field. The PSA anticipated annual production of 5 to 10 billion cubic meters of gas, with total forecast shale gas resources estimated at 2.98 trillion cubic meters.

However, Chevron withdrew unilaterally from the project in 2014 and ceased operations in Ukraine.

Since November 2022, Ukrnafta has been controlled by the Ministry of Defense, along with other key strategic enterprises. Recent leadership changes include Yuriy Tkachuk as temporary acting director and Serhiy Koretsky appointed chairman of Ukrnafta’s board in May 2025.

Ukrnafta’s gas production increased by 6.5% in 2024 to 1.17 billion cubic meters, while oil production rose slightly by 0.6% to 1.418 million tons compared to 2023.

Previously, Ukrnafta and Ukrtatnafta were core assets of the energy business empire linked to oligarchs Ihor Kolomoisky and Gennady Bogolyubov.

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