Shell Reaches Shale Gas in Ukrainian Field

October 4, 2013

Royal Dutch Shell has found gas in the Pavlovsko-Svetlakovsky field in Kharkov Region, the Ukrainian business newspaper Kapital reported on October 2. The newspaper cited the deputy regional governor, Yury Sapronov. He said Shell finished drilling the Belyaevskaya-400 well, after starting in October 2012, and confirmed the presence of gas there. Sapronov hopes that Ukraine will not need to import gas after 2020.

The Pavlovsko-Svetlakovsky field is located in the Yuzovskaya area in the regions of Kharkov and Donetsk, where up to 4tn cubic metres of gas may be found. Ukraine signed a production sharing agreement on Yuzovskaya with Shell in January 2013.

Shale gas production will allow Ukraine to cut Russian gas consumption. Production costs will amount to USD 120-130 per 1,000 cubic metres of gas, which is almost USD 100 cheaper than in the EU, Prime Minister Mykola Azarov said. Chevron, ExxonMobil and OMV's Romanian subsidiary are also involved in shale gas development in Ukraine, Lenta.ru writes.

Copyright: Samotlor Express, 2013.