Energy Headlines

The Yuzivska deposit development will make it possible to redouble total gas production in Ukraine. This was announced by the of Royal Dutch Shell Petroleum Ltd head in Ukraine Graham Tiley at a meeting with Prime Minister of Ukraine Mykola Azarov on Friday.

"If Yuzivska gas field preparing and exploration is successful, this will enable to redouble or to triple the total gas production in Ukraine," said Graham Tiley.

In turn, Mykola Azarov hopes soon be signed production-sharing agreement (PSA) and the Shell Company to begin exploration.

"The Royal Dutch Shell is a global leader in hydrocarbons production and we hope your victory in the competition will allow you to actively work in the Yuzivska field development. Now we expect necessary steps to sign the agreement from you and hope soon your company will submit draft production sharing agreements to the Government," Prime Minister noted.

He emphasized Ukraine proceeds working with diversifying energy supplies and increasing domestically extracted hydrocarbons, therefore collaboration with world leaders such as Shell and Chevron are extremely promising for Ukraine.

In this context, PM invited Shell representatives to consider the possibility of participation in the competition to conclude PSA regarding Scythian and Foros gas areas on the Black Sea shelf.

Graham Tiley promised the company is to consider this offer. However, he thanked Mykola Azarov for conducting transparent tender for the Yuzivska field development.

"We welcome the Government and Ukraine as a whole with the first fair, transparent tender for Yuzivska gas source area. We assure you that for its part will do everything necessary for an early signing an agreement," said the Shell head in Ukraine.

Background. Obligatory condition in the tender participation is to engage of Ukrainian specialists and technologies to further deposits developing. Yuzivska gas source area estimated resources (Kharkiv and Donetsk regions) are being forecasted at more than four trillion cubic meters of gas. At the stage of geological exploration is planned to attract more than 1.6 billion UAH investment and 30 billion UAH at the stage of industrial development.

Source: Government Portal