Apr 24

Energy Majors Bid for Ukraine Shale Gas Fields

By Curve natural gas in Europe No Comments »

 

Global energy majors have placed bids in tenders for two potentially large shale gas fields in Ukraine, Environment and Natural Resources Minister Eduard Stavitsky said on Monday, adding that the government would pick winners in a month.

One contract area, Yuzovska, is located in the eastern Donetsk and Kharkiv regions. The other, Olesska, is in the western Lviv region.

Ukraine’s State Geological Service estimates the reserves of the Yuzovska area at 2 trillion cubic metres and those of Olesska at 0.8 to 1.5 trillion cubic metres.

“Chevron CVX.N> and Eni have bid for Olesska (contract area),” Stavitsky told reporters. “Exxon Mobil , Shell and TNK-BP for Yuzivska.”

“The final decisions (will be announced) no later than 1800 on May 23, 2012,” he said.

According to the U.S. state Energy Information Administration, Ukraine has Europe’s fourth-largest shale gas reserves at 42 trillion cubic feet (1.2 trillion cubic metres), trailing Poland, France and Norway.

The State Geological Service has also said the Yuzovska area would require $250-$300 million in exploration investments, while Olesska would need $150-$200 million. Tender application fees were $1.9 million for Yuzovska and $1.3 million for Olesska.

Energy-hungry Ukraine is keen to launch shale gas production in order to ease its dependence on Russia, which it says is charging an exorbitant price for its gas.

Source: Reuters

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Jan 06

Russia, Belarus Dispute Spotlights Continuing Need For Energy Independence

By Michaela Davies energy independence No Comments »
An energy price dispute between Russia and Belarus escalated early this week

The dispute focuses on the Soviet-era Druzhba  pipeline system that supplies 10% of the European Union’s oil.  Poland depends on the Druzhba pipeline for most of its crude oil. Germany received about 15% of its crude through the pipeline in 2008.

Russia began curbing supplies through the pipeline to Belarus’s domestic market after an oil-supply agreement between the two countries expired Dec. 31. On Monday, Russian officials said those deliveries had been resumed, but not before Belarus threatened to cut off electricity to Russia’s westernmost region if the Russians insisted on imposing a new tax on the oil Belarus processes for export.

Three years ago, Russia briefly cut oil exports to the European Union nations through a Belarussian pipeline as the two former Soviet republics quarreled over price. That shutdown, along with a January 2009 natural-gas cutoff to Europe caused by contract disputes with Ukraine, has raised doubts in Europe about Russia’s dependability as a top energy supplier.

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Jan 05

European Energy Disputes Continue as 2010 Arrives

By Michaela Davies energy independence No Comments »
Troubled times in the energy sector continue with Russia and its European neighbours, even those who are closest to the Russian sphere of influence.  
Russia and Belarus have failed to renew an agreement on crude oil export tariffs that expired on New Year’s Eve, raising the prospect that yet another otherwise unremarkable energy pricing dispute between Russia and a neighbor could unravel into a midwinter fuel shut-off on the Continent. Just a year ago, Europeans shivered through a politically tinged dispute that went on for weeks between Russia and Ukraine over  natural gas prices and transit fees. As is the case with natural gas pipelines in Ukraine, about 1.3 million barrels of oil per day shipped along the Belarussian spur of the Druzhba pipeline supply both the internal market in Belarus and the more lucrative markets in the European Union like Germany and Poland.

On Sunday, Reuters cited two oil traders as saying that Russia had begun curbing supplies to the domestic market by cutting the flows to two refineries, Naftan and Mozyr. In Ukraine last January, that was a first step toward a more general shutdown.  Russian officials took pains to emphasize that the export volumes would continue to flow, while either refusing to confirm or denying the report of a local shut-off in Belarus.

Belarus is one-half of a loose confederation with Russia that was supposed to eventually lead to a common currency and customs zone. Yet in the oil business, so vital to Russia’s economy, Belarus was treated with privilege but as less than a fully integrated partner. The government in Belarus posted a statement saying that they had been subjected to “unprecedented pressure” to acquiesce to Russia’s demands. Both sides, however, said Sunday that negotiations were continuing.

Last January, the Russian natural gas monopoly Gazprom first tried to halt supplies to Ukraine’s domestic market in a pricing dispute. It then shut down the pipeline entirely, accusing the Ukrainians of continuing to supply their own needs by siphoning gas intended for export.

Source: New York Times   

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