Ukraine is seeking an investor for oil and gas fields in western Ukraine, while Ukrnafta will develop a hydrocarbon field previously claimed by Chevron.

The government has approved two competition proposals for two areas in western Ukrainian oil and gas fields in the area of Mezhyhirsk and Svichansk, located within the Lviv, Ivano-Frankivsk, and Chernivtsi regions. The proposed cooperation will take place under a production-sharing agreement, which stipulates that the investor will assume all risks and costs associated with geological exploration and field development. If successful, the extracted products will be divided between the state and the investor according to a pre-agreed formula.

Meanwhile, Ukrnafta will implement a production-sharing agreement (PSA) for hydrocarbon production at the Oleska site in the Lviv and Ivano-Frankivsk regions rather than Nadra Oleska. Initially, the Oleska site was set to be developed by Chevron, an American company.

In 2013, Ukraine, Chevron B.V. Ukraine, and Nadra Oleska entered into a corresponding PSA. It was estimated that production in the Oleska area would range from five to 10 billion cubic meters of gas per year. However, after Russia invaded Crimea in 2014 Chevron unilaterally withdrew from the project and halted its operations in Ukraine.