Royal Dutch Shell + Chevron Buy Ukraine's Big Oil & Gas Deal


 
www.nytimes.com


LONDON — Royal Dutch Shell, the largest oil company in Europe, has signed a contract to drill for natural gas in Ukraine.       

The company’s chief executive, Peter Voser, and the Ukrainian president, Viktor F. Yanukovich, signed a production agreement Thursday for the potentially prolific Yuzivska gas field in the eastern part of the country. The signing took place at the World Economic Forum in Davos, Switzerland.       

Winning an active Shell drilling program is a potential boon for Ukraine, which is thought to be one of the best bets in Europe for so-called shale gas and tight gas. Such gas, found in porous underground shale rock, is usually withdrawn through the process known as hydraulic fracturing, or fracking. The technique is controversial, because of the potential environmental effects, but Ukraine is more politically receptive to it than some other countries.       

The project could also give momentum to unconventional gas extraction in Europe, which lags far behind the United States in this sector.       

“All the big boys are there,” said Menno Koch, an analyst at Lambert Energy Advisory in London, speaking of Ukraine. “They see the huge potential of the country.”       

Shell has bet heavily on gas globally and wants to make sure it has an entree into any important new production area. Moving into Ukraine would give it access to another potentially significant production area, alongside its efforts in China, South Africa, Canada and Brazil, said Iain Pyle, an analyst at Bernstein Research in London.       

Europe is widely thought to have substantial shale gas and related tight gas potential, but it is moving far slower than the United States to scope out and develop its resources. Analysts figure the Continent is 5 to 10 years behind the United States in shale gas development and is unlikely to ever achieve the same scale.       

Shell plans to drill 15 wells as part of a 50-year joint venture with a local company called Nadra Yuzivska.

It would be the latest in a series of steps ahead for unconventional gas development in Europe.       

In December, the British government gave a cautious green light to shale gas exploration. Cuadrilla Resources, a British company backed by the U.S. private equity firm Riverstone Holdings and whose chairman is John Browne, the former chief of BP, says it is planning to seek new permits for hydraulic fracturing at a well near the resort town of Blackpool, England.       

Cuadrilla, which has a large swathe of acreage in the area, was ordered to halt most exploration after fracking at one of its wells caused minor earthquakes in 2011.       

Drilling for shale gas in densely populated, wealthy West European countries like Britain is a hard sell. Residents worry about potential water pollution from fracking and the disruption and noise of an industry that requires large numbers of wells.       

The oil and gas industry is betting that former Soviet states and satellites like Poland and Ukraine, which are heavily dependent on gas imports from Russia, will be more receptive politically to shale gas exploration and fracking. Ukraine has a particular incentive to develop its own gas resources because in recent years it has twice suffered cutoffs from Russia during disputes.       

During a recent interview, Paolo Scaroni, chief executive of the Italian energy company Eni, which is emerging as a major player in natural gas, said he was doubtful about unconventional gas prospects in Western Europe. But “we are extremely active in Poland and Ukraine,” Mr. Scaroni said.       

Shell’s Ukraine contract covers the Yuzivska field in the Kharkiv and Donetsk regions. The Ukrainian prime minister, Mykola Azarov, says on the government’s Web site that the area could contain as much as 113 billion cubic meters, or 4 trillion cubic feet, of gas, nearly as much as the confirmed gas reserves of Algeria, a large gas exporter.       

It remains to be seen how much if any of the Ukraine gas is recoverable. The government said on its Web site that Shell’s development area could produce 8 to 11 billion cubic meters of gas annually. That would be around 20 percent of Ukraine’s consumption.       

Chevron is negotiating for shale gas acreage in Ukraine and is drilling in Poland. The local councils in Ukraine have so far declined to approve Chevron’s deal, though, prompting displeasure from the central government. The local authorities in Shell’s area have approved development.

Views: 168

Reply to This

Replies to This Discussion

Follow the MONEY - "THIS" is why the Globalists are willing to create WW3 for Ukraine's GAS Reserves.

RSS

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted a blog post

Buying the Last haunted House on the Left (A partial autobiography)

Not to the reader there ever events here that are true and some that are fictional.Chapter IIt was…See More
5 hours ago
Doc Vega posted a blog post

In Memory of Those Who Served

 Bullets flew and ricochetedI was on that hill todayMy Company commander got blown awayI was on…See More
yesterday
Doc Vega posted blog posts
Tuesday
Doc Vega commented on Doc Vega's blog post Plausible Explanation Behind Recent Cryptid Sightings in the Wild!
"cheeki kea I was wrong Emperor Penguins are big and powerful but still alive but this,  A size…"
Tuesday
Doc Vega commented on Doc Vega's blog post Plausible Explanation Behind Recent Cryptid Sightings in the Wild!
"Cheeki kea here's another that they say there have been modern sightings of!  The name of…"
Tuesday
Doc Vega commented on Doc Vega's blog post Plausible Explanation Behind Recent Cryptid Sightings in the Wild!
"cheeki kea, did you ever hear of the giant Imperial Penguins? They were about 6 feet tall and could…"
Tuesday
Doc Vega commented on Doc Vega's blog post Plausible Explanation Behind Recent Cryptid Sightings in the Wild!
"cheeki kea I do not think these giant two legged birds would need to have a bad attitude as long as…"
Tuesday
Olivia Brooks updated their profile
Tuesday
John Miller was featured
Tuesday
tjdavis's 2 blog posts were featured
Tuesday
Zfort Group's blog post was featured
Tuesday
Doc Vega's 6 blog posts were featured
Tuesday
Burbia commented on tjdavis's video
Thumbnail

“What’s His Motive?” - Inside The Mind of George Soros

"Trump calls for George Soros and son to face federal…"
Tuesday
Burbia commented on tjdavis's photo
Tuesday
Profile IconSeeta Sathe and Olivia Brooks joined 12160 Social Network
Tuesday
tjdavis posted a video

Mossad, Terrifying CIA Technology, Blackwater & The Most Secret CIA Unit | John Kiriakou

John Kiriakou served 15 years in the CIA as a Case Officer (Spy) and as CIA's Head of Counterterrorism Operations in Pakistan where he lead the raid that cap...
Monday
tjdavis posted a photo
Monday
tjdavis posted a video

A Critique of the Tavistock Institute - The Mother Of All Conspiracy Theories

An examination of the Tavistock Institute, a theory which seeks to explain how Western societies have been brainwashed by a cabal of social scientists and th...
Sunday
tjdavis posted a video

“What’s His Motive?” - Inside The Mind of George Soros

In this short clip, Patrick Bet-David, Sebastian Gorka Adam Sosnick, and Tom Ellsworth George Soros and what motivates him to do the things he does. FaceTime...
Aug 27
Doc Vega posted blog posts
Aug 27

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted