Ukraine, Shell sign unconventional gas agreement

Ukraine signed a production-sharing agreement with Royal Dutch Shell PLC for Ukrainian shale gas field Yuzivske as part of the government’s effort to reduce dependence on Russian gas.

Terms call for Shell to hand over 31-60% of the produced gas to Ukraine. The PSC was signed at the World Economic Forum in Davos, Switzerland.

Shell received exploration rights for Yuzivske gas last year (OGJ Online, Sept. 7, 2012).

At the same time, Chevron Corp. obtained the right to develop gas deposits at Oleske gas field in western Ukraine.