Ukraine May Triple Its Natural Gas Production – Shell Ukraine Chairman

Kyiv, June 11, 2012. Ukraine may double of even triple the volume of its domestic natural gas production if Yuzivske gas field development proves to be successful, said Graham Tiley, Country Chairman for Shell Ukraine. Such statement was made during his meeting with Ukrainian Prime Minister Mykola Azarov on Friday, June 8, 2012.

As soon as the production sharing agreement is signed Shell may start gas prospecting works, noted the Prime Minister of Ukraine Mykola Azarov. He also mentioned that Ukraine explores other opportunities in order to diversify its energy supply as well as increase its domestic production of hydrocarbons.

During the meeting the Ukrainian prime minister invited Shell to participate in the new tender for the development of the two deep-water areas (Skifska and Foroska) on the Black Sea shelf. In response Graham Tiley thanked the politician for transparent tender and promised that the company would take into consideration the invitation to participate in the upcoming ones.

Notably, in May two of the world’s largest oil companies Royal Dutch Shell plc and Chevron Corp obtained the right to develop Ukrainian shale gas fields Yuzivske and Oleske. Industrial extraction of gas at the sites will begin in 2018-2019. Ukrainian state geological service estimated the amount of conventional and unconventional, as well as condensed gas deposits at Oleske field at three trillion cubic meters of gas and up to four trillion cubic meters at Yuzivske field. Both fields are expected to provide Ukraine with up to ten percent of domestically consumed natural gas by 2020 according to the press service of Ukrainian energy ministry.

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.