Royal Dutch Shell plc today signed a new version of the cooperation agreement with Ukraine. The agreement covers Shell’s involvement in shale gas extraction and diversification of energy resources mining in Ukraine. Later today the CEO of Shell Peter Voser met with the President of Ukraine Viktor Yanukovych to discuss the agreement and future cooperation.
The agreement that was signed today between the Ukrainian public company Ukrgazvydobuvannia and Shell plc. stipulates the future cooperation in the area of exploration and extraction of hydrocarbons in Dnipro-Donetsk basin, Central Ukraine. According to the agreement Ukraine will be able to take advantage of modern technology and start developing unutilized gas resources, including the unconventional ones. The parties agreed that Shell is going to invest up to USD 800 million into the shale gas development project, according to RBC. The first stage of the project is estimated at USD 200 million with USD 600 million to follow.
After the meeting with the president of Ukraine, CEO of Shell Peter Voser stated that Shell was interested in the cooperation and confirmed the company’s eagerness to provide expertise as well as the technology, to intensify and diversify mining of energy resources in Ukraine.
The initial agreement between Ukrgazvydobuvannia and Shell was signed in 2007 and stipulated the first stage of developing of the Dnipro-Donetsk trench. The potential of the area was estimated at 400 billion cubic meters of gas. Notably, around 80 percent of hydrocarbon extraction in Ukraine is conducted in Dnipro-Donetsk trench.
