ROYAL Dutch Shell and Ukrainian state-run gas and oil company Naftogaz are teaming up in a deal covering shale gas exploration in Ukraine, in order to reduce the former Soviet republic’s dependence on Russian gas.
Shell is to invest about $800 million in the project. Of this, some $200million will be spent on prospecting.
According to Ukrainian energy officials, the nation has significant deposits of shale gas in its eastern Donbass region.
Russia’s TNK-BP last year said it also expected to sign a memorandum on shale gas exploration in Ukraine.
Ukraine, which imports about 60% of gas for domestic consumption from Russia, has said its neighbour’s prices are too high for Ukrainian goods to be competitive on world markets. It paid about $350 per 1,000cu m of Russian gas for the third quarter and expects the price to rise to about $400 in the fourth.