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Royal Dutch Shell Signs Deal To Explore Ukrainian Gas Field

Ukrainian President Viktor Yanukovich (left) shaking hands with Royal Dutch Shell CEO Peter Voser at a January meeting in Davos, Switzerland.
Anglo-Dutch company Royal Dutch Shell has signed a deal with Ukraine to explore for natural gas in Ukraine's Yuzovska deposit.

Ukraine's Energy and Coal Industry Minister Eduard Stavitskyy said on September 12 that Royal Dutch Shell and Ukrainian company Nadra Yuzovskaya signed the deal, which calls for the Anglo-Dutch company to spend some $500 million on surveying at the field with an expected additional $10 billion to be spent in developing the site and infrastructure.

Ukrainian Prime Minister Mykola Azarov said the previous day that Ukraine hopes the field will eventually be able to produce some 20 billion cubic meters per year. But he called that an optimistic scenario.

Ukrainian sources estimate the Yuzovska field, located in Ukraine's Donetsk and Kharkhiv regions, has reserves of some 4 trillion cubic meters of shale gas.

Based on reporting by "Kyiv Post" and Interfax