Ukrnafta to develop Oleska hydrocarbon block in place of Nadra Ukrainy subsidiary
PJSC Ukrnafta will take over the implementation of the production sharing agreement (PSA) for the Oleska hydrocarbon block in Lviv and Ivano-Frankivsk regions, replacing Nadra Oleska LLC, which is owned by the state-owned Nadra Ukrainy.
"Consent is granted for the transfer of 100% of the rights and obligations of Nadra Oleska LLC to Ukrnafta PJSC," according to Resolution No. 304-r issued by the Cabinet of Ministers of Ukraine on April 4, 2025, titled "Certain Issues of Implementing the Agreement on the Distribution of Hydrocarbons to Be Extracted within the Oleska Block," published on the government's official portal.
The resolution also approves the draft Amendment Agreement No. 1 to the PSA for the Oleska block, originally signed between the Ukrainian state and Nadra Oleska LLC on November 5, 2013.
Deputy Energy Minister Mykola Kolesnyk has been authorized to sign the amended agreement on behalf of the Cabinet.
As reported, the PSA for the Oleska block (Lviv and Ivano-Frankivsk regions) was signed on November 5, 2013, between the Government of Ukraine, Chevron Ukraine B.V., and Nadra Oleska LLC.
Nadra Oleska, the Ukrainian partner in the PSA, was established as a joint venture between the state-owned Nadra Ukrainy (holding a 90% stake) and SPC-Geoservice LLC (10%).
However, in 2014, Chevron unilaterally withdrew from the Oleska project. In July 2014, Chevron Ukraine B.V. officially announced its exit from the Ukrainian market.
In May 2023, the Ministry of Energy noted that the full-scale Russian invasion had caused a suspension of nearly all PSAs for oil and gas exploration, as investors invoked force majeure clauses. In June 2024, Deputy Energy Minister Mykola Kolesnyk stated that only two out of 12 PSAs were still being implemented, with total hydrocarbon production under those agreements exceeding 100 million cubic meters at that time.