Ukraine, Shell Gas Deal Stirs News World
KYIV, Ukraine, January 25, 2013
KYIV, Ukraine, January 25, 2013 /PRNewswire/ --
BBC, Financial Times, The Globe and Mail, The New York Times, Reuters, The
Wall Street Journal and a number of other global media representatives draw
public attention to the signing of the production sharing agreement between
Ukrainian government and the Royal Dutch Shell. According to the agreement,
Shell and Ukrainian state company Nadra Yuzivska have equal shares in the
enterprise - 50 percent.
"A new project has been born. This is just the beginning, we shall continue
this cooperation," commented Ukrainian President Viktor Yanukovych at the
January 24 signing of the agreement in Davos, Switzerland. The document is
supposed to promote investment to Ukraine, help increase domestic gas
production, create jobs, lift the economy, and boost state budget revenue.
Reuters emphasizes the 50-year contract is "the biggest contract yet to tap
shale gas in Europe," noting that the USD 10 billion deal is a significant
step on the road to energy independence from Russia. Reportedly, Ukraine
possesses 1.2 trillion cubic meters of shale gas - third largest deposits in
The Wall Street Journal reminds that Ukraine is putting extra effort into
exploring domestic gas reserves due to high prices for imported Russian gas.
As the country stays committed to European integration, Yanukovych rejected
Russia's offer of cheaper gas in return for closer economic and political
cooperation of the neighboring countries.
Neil Buckley of the Financial Times believes deal with Shell could promote
investment to Ukraine. He reminds that in 2013 Shell alone is committed to
invest USD 400 million. Criticizing political and economic environment in
Ukraine, the author notes that reduced energy dependence of Ukraine could give
a push to closer integration with the EU. This, in its turn, would "alter the
investment environment" in the Eastern European country.
The New York Times quotes London-based Lambert Energy Advisory expert, who
notes that large energy companies recognize "the huge potential of the
country." The paper compares Ukrainian gas estimates to those of Algeria,
seventh largest gas exporter.
Shell won the right to explore gas in Yuzivske gas field in Eastern Ukraine in
May 2012. In August 2012, Shell, ExxonMobil, Romanian OMV Petrom, and
Ukrainian state company Nadra received joint rights to develop underwater
deposits at Ukrainian deep marine shelf field under the Black Sea.
Contact: For more information, please contact Maria Ivanova +380443324784
email@example.com, Project Manager at Worldwide News Ukraine.
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