Ukraine outlines shale plans of Chevron, Shell

Hands on: Ukrainian President Viktor Yanukovich meets Shell's Peter Voser ahead of Shell and Chevron's shale wins

Shale drilling by Shell and Chevron in Ukraine is likely to start next year, with first production in 2017, a government minister has said.

Environment and Natural Resources Minister Eduard Stavitsky told a Kiev news conference on Wednesday that the two supermajors would soon develop two potentially large gas fields in the former Soviet republic, Reuters reported.

Shell will develop the Yuzivska area, in eastern Donetsk and Kharkiv regions, while Chevron will explore the Olesska area in the western region of Lviv, after the blocks were awarded late last week.

"Commercial extraction on both areas will begin in 2017," Stavitsky said.

The two areas could yield at least 15 billion cubic metres of gas per year and Yuzivska alone - where about 3000 wells were likely…

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