TNK-BP to Explore for Shale Gas in Ukraine
Materials from the Russian government press service, seen by Reuters on Wednesday, shows that BP's Russian joint venture, TNK-BP, is expected to sign a memorandum on shale gas exploration in Ukraine
TNK-BP has long been seeking to diversify its business with a view to increase its exposure to natural gas. The company already owns a refining business in Ukraine.
TNK-BP is expected to sign a memorandum on shale gas exploration in Ukraine, the Russian government said on Wednesday, as BP's Russian joint oil venture seeks to increase its exposure to gas.
Government press service documents seen by Reuters said TNK-BP will explore for shale gas in Ukraine's eastern Donetsk region. The company already owns a refining business in Ukraine.
One of TNK-BP's billionaire shareholders, German Khan, told Reuters the company plans to plough between $1 billion and $2 billion into the project in next 25 years "if conditions are favourable".
He also said that TNK-BP is hoping to produce some 5 billion cubic metres of shale gas -- natural gas trapped in layered rock, rather than porous reservoirs -- in 5 to 7 years.