Shell to Start the Production of Shale Gas in Ukraine

Ukrainian President Viktor Yanukovych has said he expects that Shell will soon start work on the production of shale gas in Ukraine.

"I praise your decision to finally start the production of shale gas in Ukraine," the Ukrainian president said at a meeting with Shell CEO Peter Voser in Davos, where Ukrainian president is taking part in the World Economic Forum.

At the same time, Yanukovych noted that the problems that existed between Shell and the Ukrainian Ukrgazvydobuvannia Company, in particular, court trials, had already been resolved, and "misunderstandings" with the Ukrainian Tax Administration had been cleared up.

"Now I expect effective action from you on the start of gas exploration on the border between Kharkiv and Donetsk regions and, of course, the start of its production," Yanukovych said.

He also noted that all issues regarding the licensing of Shell companies had been also resolved.

In June 2010 year, Minister of Fuel and Energy Minister Yuriy Boyko said that Ukraine expected to establish a joint venture (JV) company with Shell and ExxonMobil on  production of shale and methane gas on Ukrainian territory  by year end.