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Ukraine's agreement with international company Royal Dutch Shell remains inviolable, Prime Minister Mykola Azarov has reaffirmed in Davos. Moreover, according to him, cooperation with the largest international company will be expanded, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
Following the results of negotiations in Davos between Azarov and Jorma Ollila, Chairman of the Board of Directors of Royal Dutch Shell, it became known that the seventh largest company in the world can deal not only with shale gas production in Ukraine.
“We are not dropping shale gas production. Cooperation with Shell will be expanded to other areas,” Azarov said.
Jorma Ollila said Shell was aiming for long-term cooperation with Ukraine. “Shell has long-term interests in Ukraine and the desire to implement a number of important large-scale projects,” he stressed.
Experts say the company’s core business area is exploration, output, processing, transportation and sales of hydrocarbons (oil and natural gas). Also, Shell has a large petrochemical business (Shell Chemicals). The company has a large-scale innovation experience and develops its opportunities in the field of renewable energy sources (wind, hydrogen and sun). In Ukraine, Shell prospects and produces oil and gas, and develops a gasoline station chain with the same brand name.
One year ago today, on Jan. 24, 2013, Shell, Nadra Yuzivska Ltd., and the government of Ukraine signed a Production Sharing Agreement for exploration, development and production of hydrocarbons at Yuzivska field. It is situated in the Dnieper-Donetsk oil and gas basin at the territory of Donetsk and Kharkiv regions. The field size is 7,886 km2. According to preliminary plans, drilling at the field will start in the first half of 2014. And the company expects to produce shale gas as early as in 2015.