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UNIT 1

OIL AND GAS PROSPECTING

Text 1

Task I. Give Ukrainian equivalents to the following word combinations:
to play significant role, to increase production, fuel and energy complex, perspective fields of
shale gas, to construct terminal, at spot markets, the annual capacity, subsidiaries, total
volumes of gas and oil extraction, input (output) capacity of the pipelines, government
declared its plans to restructure, oil and gas mining, transportation and trading, newly
established companies, oil processing plants, Ukrainian refineries, oil and gas resource base,
original oil resources are explored, subsoil, undiscovered.
Memorize these words and be ready to use them in the context.

Task II. Read the text and translate it into Ukrainian:

Oil and gas industry
Oil and gas industry plays significant role in securing national safety in energy sector
and is considered strategic. Industry is regulated by the Ministry of Energy and Coal Industry
of Ukraine. The major player on the market is National Joint-Stock Company Naftogaz of
Ukraine is the leading enterprise of Ukraine’s fuel and energy complex. Ukraine has
considerable oil and gas resource base that makes it possible to increase production volumes
of hydrocarbons in the future. According to the State Service for Geology and Mineral
Resources of Ukraine possible hydrocarbon resources in Ukraine are approximately 9.3 bn
tons of equivalent fuel, including oil and gas condensate 1.6 bn tons (17.6%) and gas 7,254
billion m3 (77.8%). At the same time proven reserves of hydrocarbons are at the level of 3.5
bn tons of equivalent fuel. Ukraine has perspective fields of shale gas with estimated reserves
of 1 billion m3.Total potential reserves of Ukrainian shelf are 1.5 bn tons of equivalent fuel
that account for 30% of all energy resources in the country. Also Ukraine plans to construct
LNG terminal with help of foreign company that will give the possibility to buy gas at spot
markets. The annual capacity of this terminal is planned to be 10 billion m3. Naftogaz of
Ukraine and its subsidiaries extract more than 90% of total volumes of gas and oil extraction
in Ukraine. Overall production of oil and gas condensate was 3.3 m tons in 2011 and gas
extraction 20.1 billion m3. Transportation of oil in Ukraine performs Ukrtransnafta
(subsidiary of Naftogaz of Ukraine).The input capacity of the pipelines is about 114m tons of
oil annually and output capacity is 56.3 m tons. Transportation of gas in Ukraine performs
State Company Ukrtransgaz (subsidiary of Naftogaz of Ukraine). National gas transportation
system has input capacity of 288 billion m3 per annum and output capacity of 178.5 billion
m3 per annum (including 142.5 billion m3 in Europe).
Ukrainian government declared its plans to restructure Naftogaz of Ukraine. Newly
established companies, successors of Naftogaz of Ukraine, will be working in separate
spheres: oil and gas mining, transportation and trading. There are 6 refineries in Ukraine that
process oil and produce petroleum products. The majority of oil processing plants require
significant investments to modernize its fixed assets. The average processing depth at
Ukrainian refineries was 76% in 2011 as compared to 90-95% in many foreign countries
abroad. Due to the lack of domestic oil there is reasonably high percent of imported petroleum
(mainly from Russia) in total amount of supplied oil to Ukrainian refineries. Ukraine has
significant oil and gas resource base that makes it possible to increase production volumes of
hydrocarbons in the future. Original oil resources are explored by 37%, gas – by 39% and the
production rates (part of the accumulated hydrocarbon output in the possible resource base)

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