Reuters: Ukraine shale talks cannot run on indefinitely - Chevron

Chevron remains optimistic over prospects for a shale gas deal in Ukraine but talks with the government which have already been extended cannot drag on indefinitely, an executive with the U.S. company said on Tuesday.

Chevron is negotiating a production-sharing agreement for shale exploration of the Olesska field towards Ukraine's western borders with the European Union.

Royal Dutch Shell signed a $10 billion deal with the government for exploration of the Yuzivska field in eastern Ukraine last month.

The Chevron project, however, has run into vocal criticism from local politicians and environmental lobby groups.

Reflecting how politically sensitive it remains, the Kiev government has removed a self-imposed May deadline for conclusion of the deal to allow itself more time.  MORE