SHELL TO PRODUCE SHALE GAS IN YUZIVSKA, EASTERN UKRAINE

September 16, 2013

(Interfax Ukraine) According to Ukrainian Prime Minister Mykola Azarov Royal Dutch Shell is to launch shale gas production in the Yuzivska block in industrial quantities from 2015. The agreement signed under last year’s framework deal on the block enables Shell to invest $500 million in geological exploration of the area, involving conventional, tight and shale gas. The Anglo-Dutch supermajor’s overall investment in exploration and infrastructure of the acreage has previously been estimated at $10 billion. First gas extraction is envisaged in 2015, with total resource potential running to between three and 3.5 trillion cubic metres of gas deposits. 30% and 60% of extracted gas would belong to Ukraine, while the rest would be split between Royal Dutch Shell and Nadra Yuzivska. (Nadra seismic survey in Easter Ukraine – Image: Nadra)