Shell Considering $1 Billion Investment in Ukraine Shale Gas

Yury Sapronov, deputy head of Kharkiv Regional State Administration in Ukraine, said that Royal Dutch Shell may invest no less than $1 billion in geological exploration and production of shale gas in north-east Ukraine.

"Preliminary data say the company has examined the Izyumsky (Izium) district as an area for gas production. Project development may take three to five years," commented Sapronov on the regional government website.

"According to the United States Geological Survey, there are five to eight trillion cubic meters of shale gas in Ukraine. Certainly, Shell is strategically important for us. Today, I cannot name the exact sum of investment, but we are speaking about not less than $1 billion. If Shell starts exploratory drilling this year, the project's implementation will take from three to five years," Sapronov said.