Chevron (NYSE:CVX), Shell (NYSE:RDS-A) nearing Ukraine Nat Gas deals
Chevron Corp. and Royal Dutch Shell PLC are set to be named by Ukraine to explore 2 vast fields for shale Gas exploration, it was reported Thursday.
ExxonMobil Corp. (NYSE:XOM), Italy'sENI S.p.A. (NYSE:E) and Russian-British TNK-BP Holding (RS:TNBP), which also submitted bids in the tenders, launched in February, were being urged to bid in a new round of sub-Salt Oil and offshore exploration tenders, the report said.
Government sources said the winners for the multi-billion dollar projects were expected to be publicly named in a day or two after legal procedures and formalities were completed.
Ukraine is a country in Central and Eastern Europe. Ukraine borders the Russian Federation to the east and northeast, Belarus to the northwest, Poland, Slovakia and Hungary to the west, Romania and Moldova to the southwest, and the Black Sea and Sea of Azov to the south and southeast, respectively. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after the Russian Federation.
Ukraine is one of Europe's largest energy consumers; it consumes almost double the energy of Germany, per unit of GDP. A great share of energy supply in Ukraine comes from nuclear power, with the country receiving most of its nuclear fuel from Russia. The remaining oil and gas, is also imported from the former Soviet Union. Ukraine is heavily dependent on its nuclear power. The largest nuclear power plant in Europe, the Zaporizhzhia Nuclear Power Plant, is located in Ukraine.
In 2006, the government planned to build 11 new reactors by the year 2030, in effect, almost doubling the current amount of nuclear power capacity. Ukraine's power sector is the twelfth-largest in the world in terms of installed capacity, with 54 gigawatts (GW). In 2007 47.4% of power came from coal and gas (approx 20% gas), 47.5% from nuclear (92.5 TWh) and 5% from hydro.
Currently the country has four active nuclear power stations, located in Kuznetsovsk, Enerhodar, Yuzhnoukrainsk and Netishyn. In addition to these active plants, a fifth reactor complex had been planned for the Crimea, but construction was suspended indefinitely in the wake of the Chernobyl disaster, a major nuclear incident which took place at the Chernobyl Atomic Energy Station, 110 km north of Kiev.
All of Ukraine's RBMK reactors (the type involved in the Chernobyl disaster), were located at the Chernobyl Nuclear Power Plant. All of the reactors there have been shutdown leaving only VVER reactors operating in the country, which are much safer than RBMK units. Three of these new-type reactors were built since 1991 in the independent Ukraine (with the first one in 1995), whilst the other sixteen were inherited from the Soviet Union.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.