Royal Dutch Shell Plc and Chevron Corp. gained the right to develop Ukrainian shale gas fields Yuzivske and Oleske, Prime Minister of Ukraine Mykola Azarov said in his interview with Euronews.
The fields are expected to provide Ukraine with up to 10% of domestically consumed natural gas by 2020.
The estimated investment in the fields will amount to at least $370 million, with the number growing significantly should the gas reserves prove to be commercially viable.
Industrial extraction of gas at the sites will begin in 2018-2019.
Ukrainian state geological service estimated the amount of both conventional and unconventional, as well as condensed gas deposits at the 6,000 square kilometer Oleske to be at three trillion cubic meters. As for the Yuzivske field, it may offer up to four trillion cubic meters of gas.
Ukraine announced the public bid for the development of the prospective seven trillion cubic meters of gas in the fields in February 2012. Exxon Mobil Corp., and TNK-BP also placed bids for the right to develop the Yuzivske field in eastern Ukraine (Donetsk oblast), while Chevron and Eni S.p.A. competed for the right to establish gas production at Oleske, Lviv region.
Copyright (c) 2012 Dow Jones & Company, Inc.
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