Ukraine keen to increase domestic energy production

Ukraine is keen to increase domestic gas and oil production to achieve energy independence, President Viktor Yanukovych said Wednesday. "Oil and gas reserves are the subject for commercial exploitation and, most importantly, they create conditions for Ukraine's gradual withdrawal from energy dependency," Yanukovych said during a meeting with James Johnson, the head of Chevron Eurasia, Europe and Middle East Exploration and Production Co. Kiev has been making considerable efforts to develop its oil and gas industry and establish partnership with leading international companies in the energy field, Yanukovych said. Kiev picked Chevron Corp and Royal Dutch Shell in May 2012 as partners to extract shale gas in eastern Yuzovska area and the western Olessky field. Ukraine considers its vast shale-gas reserves of at least 1.3 trillion cubic meters as an alternative to Russian natural gas. Experts said Ukraine's shale gas development looks promising and the alternative gas may change the country's energy picture.