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Lvov region council rejects Chevron’s shale gas project

June 21, 2013, 14:44 UTC+3
MPs demanded that the Cabinet should conduct a state expert assessment of the hydrocarbon production sharing agreement
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LVOV, June 21 (Itar-Tass) - Ukraine’s Lvov region council declined to consider at its session on Friday the development of Olesska shale gas field in western Ukraine by U.S. oil giant Chevron.

Instead of this MPs demanded that the Cabinet should conduct a state expert assessment of the hydrocarbon production sharing agreement, the council’s press service said on Friday.

Legislators of the neighboring Ivano-Frankovsk region also declined to consider this issue. They plan to hear a report by the environment minister’s advisor on this problem, the regional council speaker, Vasily Skripnichuk, said.

On June 16 Prime Minister Nikolai Azarov told the international conference Ukraine and Partners that “the government will impose higher gas prices on residents of Ukraine’s western regions over their regional councils’ unwillingness to give green light for shale gas production.”

Azarov described the local authorities’ position as anti-Ukrainian, which is aimed at undermining the country’s energy security.

On February 13 the Ukrainian government sealed a 50-year agreement with Shell on shale gas production in the Yuzovska field in the Donetsk and Kharkov regions and with Chevron in the OIesska field in the Lvov and Ivano-Frankovsk regions.

Ukraine plans to get up to 25 billion cubic meters of shale gas a year.

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