September 18, 2011
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№ 6 (June 2011)

TNK-BP To Invest $1.8 Billion In Ukraine Shale Gas

TNK-BP has plans to invest $1.8 billion in unconventional gas projects in Ukraine over the next six to seven years, the company's vice president for gas and power supply Mikhail Slobodin said. Investing $1.8 billion into six Ukrainian shale deposits by 2017 or 2018 will allow TNK-BP to produce up to 3 billion cubic meters of gas a year, with initial production lower than that, Slobodin told Dow Jones Newswires.

By Dow Jones & Company, Inc.

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Unconventional gas sources such as shale gas, which has shaken up the U.S. gas market in the past two years, have caught the interest of major players on the European market. U.S. oil major Chevron has recently acquired shale gas fields in Poland and Romania.

"Even though they have had success with shale gas in the United States, that doesn't mean we will have the same success in Ukraine and Poland," Slobodin said. "No-one really knows."

Ukraine's eastern Donetsk region may hold considerable shale deposits, an unconventional source of natural gas produced by hydraulic fracturing. TNK-BP, a joint venture between U.K. oil major BP and a group of Soviet-born billionaire investors, is targeting six licences containing unconventional tight gas in Ukraine.
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