Ukrnafta launches geological exploration at Oleska block

PJSC Ukrnafta has received a license from Ukraine's State Service of Geology and Mineral Resources to explore the Oleska Block and is commencing geological exploration activities there, the company announced Thursday on its official Facebook page.

"The company is initiating exploration and prospecting work on a potentially oil- and gas-bearing area spanning 6,320 square kilometers in western Ukraine," the statement said.

Ukrnafta noted that the Oleska Block is expected to yield both conventional and unconventional hydrocarbon reserves, including shale gas and tight gas. Successful exploration and subsequent development could mark the start of unconventional hydrocarbon production in Ukraine.

"This will significantly expand our resource base: in addition to the existing 2,125 square kilometers of licensed fields, we're adding another 6,324 square kilometers with oil and gas potential," the company said, emphasizing that Ukrnafta already possesses the necessary technological infrastructure near the Oleska Block to enable efficient operations.

The company also pointed out that active exploration and development of hydrocarbon fields would reduce dependence on imports and global market prices, while also generating new jobs in Lviv and Ivano-Frankivsk regions.

As reported, 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 PJSC Ukrnafta," 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 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. 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.

Ukrnafta is Ukraine's largest oil extraction company and operates a national network of filling stations. In March 2024, the company took over the management of Glusco assets, and now operates 547 filling stations – 462 of its own and 85 under management.

The company is implementing a comprehensive program to renew operations and modernize the format of its filling stations. Since February 2023, Ukrnafta has been offering its own fuel vouchers and NAFTA Cards, which are sold to both legal entities and individuals through Ukrnafta-Postach LLC.

Ukrnafta holds 92 licenses for industrial development of fields. It has 1,832 oil and 154 gas production wells on its balance.

The largest shareholder in Ukrnafta is Naftogaz Ukrainy, which holds a 50% plus one share.

In November 2022, the General Staff of the Armed Forces of Ukraine decided to transfer the corporate rights of the company, previously owned by private shareholders, to the state. The Ministry of Defense now oversees these shares.