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Ukraine signs USD10bn shale deal with Shell

January 28/2013

MOSCOW (MRC) -- Ukraine took its first major step away from dependency on Russian gas imports on Thursday when it signed a USD10 billion shale gas deal with Shell, said Upstreamonline.

The 50-year production sharing agreement, signed on the sidelines of the World Economic Forum in Davos, marks the biggest contract yet to tap shale gas in Europe and the largest foreign investment in the former Soviet republic.

Ukraine chose Shell last May as a partner to develop the Yuzivska field in the east of the country and regional councils there approved the production-sharing deal last week, removing the last hurdle to signature.

Ukraine is said to have Europe's third-largest shale gas reserves at 42 trillion cubic feet (1.2 trillion cubic metres), according to the US Energy Information Administration.

The Yuzivska field could be producing 20 billion cubic metres of gas in 2018.

Ukrainian officials said earlier this month that Shell saw investment under the deal of at least USD10 billion "under the most likely scenario" and possibly as much as USD50 billion.

The government chose Chevron to develop the Olesska field in the western Lviv and Ivano-Frankivsk regions bordering the EU.

Ukraine has also chosen an ExxonMobil-led consortium to explore for offshore gas in the Black Sea and is seeking foreign partners to help it build a liquefied natural gas terminal.

As MRC wrote earlier, Ukrainian government cut  99% of fees for the shale gas deals for  the world's largest oil producer Shell, Chevron and ExxonMobil.
Author:Anna Larionova
Tags:gaz, gazopererabotka, Chevron Phillips, Exxon Mobil, Shell.
Category:General News
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