OREANDA-NEWS. September 18, 2013. Ukraine has chosen Dutch company Royal Dutch Shell to recover shale gas in Donetsk and Kharkiv region because the company has the latest technology making safety gas and oil output in these densely populated areas.

This was started by Prime Minister of Ukraine Mykola Azarov during the Shuster Live program on the Inter TV Channel late on Friday.

"Shell is the largest company that has the latest technology for safe shale gas extraction," he said.
The PM noted that negotiations with Shell had been conducted for two years.

Mykola Azarov added that the contract signed before with Shell on September 12 is mutually beneficial. "We will gain some energy independence, whereas Shell will earn their money," he said.

Recall, on September 12, during a working visit of Prime Minister Mykola Azarov to the Netherlands, Ukraine and Royal Dutch Shell inked an agreement on operating activities regarding a production sharing agreement for hydrocarbons to be extracted on the Yuzivska area.
Under the agreement, depending on the volume of production, 30% to 60% of gas will belong to the state. The proportion between investors - Royal Dutch Shell and Nadra Yuzivska - will be fifty-fifty.

At the first stage Royal Dutch Shell will invest around USD500 million in geological exploration, whereas the company's total investment in commercial development and construction of communications on the Yuzivska area is estimated at USD 10 billion

The Yuzivska area is located in Donetsk and Kharkiv regions. According to Royal Dutch Shell experts, projected gas reserves are estimated at 3-3.5 trillion cubic meters.