UPI: Shell rejects Ukrainian-made pipes for Yuzivska shale gas field

Royal Dutch Shell said this week Ukrainian pipe makers won't be included in its plans to develop the country's shale gas reserves due to low-quality product.

The Dutch oil producer announced on its website Monday it will instead be looking to Japanese imports for pipes to use in its new joint-venture effort to produce up to 20 billion cubic meters of shale gas a year at the Yuzivska gas field in the eastern Kharkov and Donetsk regions.

Ukraine, which holds Europe's third-largest shale gas reserves, in January signed a production agreement with Shell to drill 15 wells in a 50-year joint venture with the local company Nadra Yuzivska to develop the Yuzivska field.

The company said that while Ukrainian-made pipes were currently of insufficient quality for the high-pressure drilling needs, the 50-years term of the deal gives Ukraine time to improve its product enough for future use.  MORE