SAN RAMON (dpa-AFX) - In an interview with Euronews, the Prime Minister of Ukraine Mykola Azarov said that European oil giant Royal Dutch Shell Plc (RDS-A, RDSA.L, RDSB.L, RDS-B) and Chevron Corp (CVX) obtained the right to develop Ukrainian shale gas fields Yuzivske and Oleske, respectively. The fields are expected to provide Ukraine with up to ten percent of domestically consumed natural gas by 2020.
Worldwide News Ukraine reported that the estimated investment in the fields will amount to at least US$370 million with number growing significantly should the gas reserves prove to be commercially viable.
Worldwide News Ukraine also reported that 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 6,000 square kilometer Oleske at three trillion cubic meters. As for 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 gas in the fields in February 2012. Exxon Mobil, Shell, and TNK-BP placed their bids for the right to develop Yuzivske field in eastern Ukraine (Donetsk oblast), while Chevron and Eni competed for the right to establish gas production at Oleske, Lviv region, Worldwide News Ukraine reported.
Previously, the Minister of Energy and Coal Industry of Ukraine Yuriy Boyko stated that Ukraine planned to set up domestic shale gas extraction in five years.By 2020 Ukraine plans to extract four to five billion cubic meters of shale gas annually. The country prospects to consume 53.7 billion cubic meters of gas with 26 billion of total domestic consumption, the report said.
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© 2012 AFX News
