Shell, ExxonMobil to Drop Project in Ukraine Black Sea

UK-based Royal Dutch Shell and US ExxonMobil have reportedly ended talks with Ukraine on tapping gas from the Skifska site in the Black Sea.

"In January 2014, Shell exited negotiations on a production sharing agreement (PSA) related to the Skifska block in the deepwater shelf of the Black Sea. Shell had expected that the PSA would be signed in 2012 or 2013, but unfortunately it didn't happen," a Shell’s spokeswoman told Reuters.

Shell, ExxonMobil, OMV and Ukraine’s Nadra were awarded joint rights to explore and develop the field, which is believed to contain between 7.06 and 8.83 tcf of natural gas reserves.

According to the evidences available at the moment, Shell took its decision in January. It withdrew from negotiations, but it maintains an eye on other projects in Ukraine, including exploration of tight gas formations.

ExxonMobil voiced similar concerns last year, but confirmed its interest on the Romanian part of the Black Sea.