Ukraine Prepares for Major Unconventional Gas Activity

Ukraine may sign gas production contracts worth a total of $1 billion with ExxonMobil, Halliburton, Eni and Total this month.

Kommersant Ukraina reported comments made by a Ukrainian Energy and Coal Production Ministry source.

Ukrainian authorities recently signed an $800 million contract with Royal Dutch Shell for geological exploration and production of shale gas in the east of the country.

"We hope that the agreement will allow us to triple domestic gas output in two to three years," the source told the paper.

Ukraine's internal gas production stands at about 20 billion cubic meters. It imported 40 bcm from Russia last year. Industry analysts say that Ukraine holds Europe's largest reserves of shale gas and can produce 7 to 10 bcm annually.

Source: RIA Novosti