Ukraine: Oil and Gas

Ukraine’s energy sector is one of the most critical components of the country’s economy. The sector
has been plagued by a lack of domestic energy sources, increasing foreign debt, outdated and
inefficient equipment, lack of funds, fuel shortages, barter deals, and non-payment by consumers.  
However in recent years Ukraine has pressed ahead with energy reforms, increasing cash collection
rates and the promotion of privatization efforts.  

In turn, the oil and gas industry is now beginning to stabilize after years of decline. According to  
Ukraine’s  ‘National Program for Oil & Gas to 2030’, developments are planned in the following key
areas: increased geophysical research and exploration drilling, increased development drilling, and
stabilization and gradual increase of oil, gas and condensate production.  The accelerated
exploration, development and production of Ukraine's indigenous oil and gas resources is a critical
part of Ukraine's drive for energy independence.  

All of these areas provide significant opportunities for foreign investment, particularly
exploration/production, and the supply of advanced technologies, products and services to facilitate
increased production (eg horizontal drilling, reservoir management, work-over services, completion
services).  Pipeline products and services will also be of interest to the operators of Ukraine’s huge
oil and gas pipeline networks.

Ukraine is blessed with a wealth of natural resources, substantial domestic production potential, and
one of the largest oil and gas pipeline infrastructures in the world.  Due to its strategic location
between oil and gas suppliers in Russia, Central Asia and the Caspian Basin and consumers in
Europe, Ukraine is also a key transport country.  Clearly, Ukraine has the foundation to ensure its
own energy security and integrate politically and economically with Europe.

For a summary of Ukraine's hydrocarbon reserves please follow this link:  
Ukraine Reserves

Sources of information used in this website include:

Energy Information Administration, CIA World Factbook, U.S. Department of Commerce's Business
Information Service for the Newly Independent States (BISNIS), Economist Intelligence Unit
ViewsWire, U.S. Embassy in Ukraine, Canadian Embassy in Ukraine, Oil and Gas Journal,
Petroleum Economist, PlanEcon, Deane Group International Ltd.