Ukraine could potentially double or even triple natural-gas production in a decade after it starts shale extraction, according to Royal Dutch Shell Plc.
Shell, which won a license in May to start commercial production at the Yuzivska field in eastern Ukraine, has submitted a draft product-sharing agreement to the Ukrainian government, said Graham Tiley, its country chairman.
Europe’s biggest energy producer is waiting for initial test results to assess how fast the deposit can be tapped, Tiley said in an interview last week.
“We need to see how fast the project will go and what the level of investments will be,” Tiley said. The minimal level of investment required at the exploration phase is $200 million, he said.
Ukraine plans to extract 21 billion cubic meters of natural gas domestically this year, Energy and Coal Minister Yuriy Boyko said in January. The country is seeking alternatives to Russian gas imports, which meet 70 percent of its energy needs.