Shell Ukraine Regards Improvement of Investment Climate in the Country

    Shell Ukraine Regards Improvement of Investment Climate in the Country

  PR Newswire

  KYIV, Ukraine, February 13, 2013

KYIV, Ukraine, February 13, 2013 /PRNewswire/ --

"I believe that Ukraine fills me with optimism," said Graham Tiley, Shell
Ukraine Country Chairman during his press conference in Donetsk on Tuesday,
February 12, 2013, reports Ukrinform. During the event he also reiterated his
belief that investment climate in Ukraine was improving.

"I'm very pleased to see such a fair and transparent tender as the one that we
won," said Tiley at the press conference. Notably, Shell won the right to
explore gas in Yuzivske gas field in eastern Ukraine in May 2012.

Shell Ukraine senior official reminded that during the first stage of
exploration the company will drill 15 wells spending about USD 200 million. In
addition, starting in 2013 Shell will annually invest in Ukrainian social
projects approximately USD 2 million.

Reportedly, in January 2013, Ukrainian government and the Royal Dutch Shell
signed the production sharing agreement aimed at increasing domestic shale gas
production, creating jobs, lifting the economy, boosting state budget revenue,
and promoting investment to Ukraine. The 50-year contract was "the biggest
contract yet to tap shale gas in Europe," commented Reuters at the time on
Ukraine-Shell agreement, noting that the USD 10 billion deal is a significant
step on the road to energy independence from Russia.

Recently, Ukraine has been extensively covered by the international media with
respect to its investment potential. The Financial Times special report
article focusing on Ukrainian energy, published in September 2012, highlighted
opening up of the "underinvested but promising" energy sector to the
international companies. Author Roman Olearchyk noted the irony of the effect
that high Russian gas prices caused - they "helped to change Ukraine's
investment policy for the better".

Neil Buckley of Financial Times believes that the deal with Shell could
promote investment to Ukraine, reduce energy dependence from the Russian gas,
and push the country closer toward integration with the EU. This would "alter
the investment environment" in Ukraine, he said.

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. Ukraine's shale gas
reserves are projected to be the third largest deposits in Europe containing
1.2 trillion cubic meters of gas according to the U.S. estimates.

Contact: For more information, please contact Maria Ivanova +380443324784, Project Manager at Worldwide News Ukraine.
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