"Shell" and SC "Ukrgazvydobuvannya" signed a new contract on joint activity

abarrelfullabarrelfull wrote on 02 Sep 2011 08:16
Tags: gas shale shell ukraine upstream


Today the "Shell" and SC "Ukrgazvydobuvannya" signed a new agreement on joint activities for the joint search and extraction of hydrocarbons in eastern Ukraine on the basis of the agreement, signed in June 2006

The purpose of the revised contract on joint activity remains unchanged: the discovery and production of hydrocarbons in the license areas of joint activities. However, the results of studies conducted since 2006, improved understanding of the parties to the technical characteristics of areas of joint activity that can improve collaboration on them.

In this regard, an updated agreement provides for an optimized portfolio of licensed areas, implementing a phased approach to conduct exploration and corrects management model and funding arrangements of the project. The shares of "Shell" and SC "Ukrgazvydobuvannya" according to the revised agreement on joint activities to continue at 50% each.

After initial exploration, the cost of "Shell" on the joint venture could reach $ 200 million dollars.

"Shell" has considerable experience in developing sophisticated and integrated gas projects. We look forward to the opportunity to use our global experience and innovative technologies to discover gas potential areas of joint activity through safe and effective ", - said Patrick Van Daele, Director of" Shell "engaged in exploration and production in Ukraine.

Drilling the first well in the search project will begin in late 2012


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