The geological industry in Ukraine boasts long-standing traditions. As part of the Austro-Hungarian Empire, Western Ukraine emerged as the cradle of the global oil and gas sector. Industrial oil extraction commenced in the city of Boryslav in the 1850s. In 1853, a method for oil distillation was invented in Lviv, and the first gas lamp was constructed. Lviv also hosted the inaugural World Petroleum Congress in 1877.
Meanwhile, in the Eastern and Southern regions of Ukraine, which were part of the Russian Empire, coal mining (in the Donbas), iron and manganese ore extraction (in Kryvyi Rih and the Nikopol basin), and based on them, metallurgical and engineering industries were developing.
In 1911, at the International Exhibition in Turin, Italy, an overview geological map of the coal-bearing regions of the Donetsk coal basin was displayed, earning the Great Gold Medal. The Donbas became a global standard for the geological study of coal-bearing deposits.
An allegorical representation of the underground wealth of the Donbas region is depicted in the painting by the renowned artist Viktor Vasnetsov titled "Three Princesses of the Underground Kingdom." The three princesses – Gold, Copper, and Coal – symbolize the valuable minerals of the Donbas. They are distinguished by age: the eldest is Copper, followed by Gold, and the youngest is Coal. This sequence mirrors the historical progression of mankind's exploitation of natural resources.
In 1916, Ukraine established the only public organization of geologists in the Russian Empire – the Kharkiv Geological Society.
The World War I resulted in the collapse of the Austro-Hungarian and Russian Empires, briefly granting Ukraine the opportunity for independent development. In the newly established Ukrainian state in 1918, the Geological Committee and the Ukrainian Academy of Sciences were founded. Scientific geological research and the training of geology specialists were conducted at the universities of Kyiv and Lviv.
Hydrogeological work in Ukraine commenced in the 1830s-1840s. By the late 19th century, special expeditions were organized to study groundwater formation, assess possibilities for drinking and irrigation water supply, and drill water wells. Geologists from Kyiv University during the late 19th century substantiated the feasibility and developed projects for supplying Kyiv with artesian water.
From the 1920s until 1991, the Ukrainian geological sector, mining, and industrial enterprises were integrated into the unified economic complex of the Soviet Union. Geological exploration works, enterprises for their technical support, and geological science, along with personnel training, were centrally managed under the conditions of a planned socialist economy, with funding provided from the state budget. This structure had certain advantages in studying subsoil resources, as it involved strict adherence to the staged and phased approach in conducting geological exploration works and ensured their reliable and stable funding.
As a result, geological mapping at a scale of 1:200,000 was carried out across the entire territory of Ukraine. Within the Ukrainian Shield, the Donetsk Basin, the Carpathians, and the Crimean Mountains, mapping was done at scales of 1:50,000 to 1:25,000. Reconnaissance and exploration work was conducted for various types of minerals.
From 1956 until the mid-1970s, a comprehensive state hydrogeological survey was conducted across Ukraine at a scale of 1:200,000. Hydrogeological maps ranging from 1:50,000 to 1:25,000 were produced. Specialized hydrogeological and engineering-geological surveys, at a scale of 1:50,000, were undertaken in significant areas of the south, north, and northwest of Ukraine to support land reclamation efforts. Furthermore, special engineering-geological surveys were carried out to aid in urban development planning for major cities, the establishment of reservoirs, and the implementation of irrigation and drainage systems.
In 1950, the Shebelynka gas condensate field, one of largest in Europe, was discovered (with initial gas reserves of 650 billion cubic meters). Following the development of this and many other fields by 1975, annual gas production reached a historical maximum of 68 billion cubic meters.
The construction of transboundary oil and gas transportation networks passing through Ukrainian territory, as well as the establishment of underground gas storage systems, has positioned Ukraine as a major energy transit state. This development has prompted the creation of local gas pipelines and further extensive gasification of the country.
Exploration and prospecting activities in Ukraine have significantly expanded the mineral resource base. More than 8,000 deposits and 98 types of mineral resources with industrial significance have been identified. Despite Ukraine's territory accounting for only 0.4% of the Earth's land area, it holds nearly 5% of the world's proven reserves of fossil resources.
Thousands of Ukrainian specialists worked in the republics of the Soviet Union, as well as in countries in Africa, Asia, and South America.
The inefficiency of the planned economy led to an unsuccessful attempt to rebuild it, resulting in an economic collapse, and serving as a catalyst for the dissolution of the Soviet Union and the re-emergence of independent states, including Ukraine. In young Ukrainian state, a painful transition from a planned to a market economy began.
Indeed, during the Soviet era, state geological enterprises operated as service entities responsible for exploring energy, mineral, and water (groundwater) deposits. They then transferred their findings without charge to the state-owned production enterprises under the relevant ministries and departments. The archaic structure of the geological exploration industry contradicted the fundamental principles of the emerging market economy in Ukraine, leading to its eventual dismantling over time. Budgetary funding for geological exploration enterprises was nearly halted, resulting in the dissolution of production teams, the dismantling of influential production and scientific institutions, and leaving thousands of highly skilled specialists without work.
Furthermore, there was still a demand for geological exploration services among Ukrainian extraction companies, many of which had already been privatized. Recognizing this necessity, in 1991, a group of young Ukrainian geologists considering the organizational structure, forms, and activities of geological enterprises in developed countries, and leveraging their professional expertise, established the first private company of the NADRA GROUP.
The mentioned enterprise gradually assembled a consortium of specialized industrial firms to offer an extensive array of geological exploration services and produce the necessary tools and equipment. The founders and executives of these firms were notable Ukrainian geologists who had previously managed enterprises of the State geological industry of Ukraine. These professionals moved to work within NADRA GROUP's private enterprises, alongside their colleagues, as the State geological enterprises where they were employed were either drastically reducing their activities or shutting down completely.
Former experts from Ukraine's state geological industry played a crucial role in shaping the initial professional experience and competencies of NADRA GROUP companies. This foundation eventually facilitated the execution of several thousand independent production projects aimed at exploring and supporting the extraction of energy, mineral, and water resources. Additionally, it led to the manufacturing of corresponding tools and equipment, not only in Ukraine but also in over 20 countries worldwide.