SC “Ukrgasproduction” and Shell Company start the execution of their joint activity

The subsidiary company “Ukrgasproduction” of NJSC Naftogaz of Ukraine together with “Shell Ukraine Exploration and Production” Company have finished the development of the first stage of the operating program of joint investment activity on exploration of deep horizons in the licence areas, special permits for which belong to SC “Ukrgasproduction”. This program will be the first stage of realization of the signed agreement, concluded by the companies in 2006.

According to the approved operating program the main volume of work will be done on the best structures of Dnieper-Donets depression: Shebelynska and Western- Shebelynska licence areas, the predicted resources of which make up more than 400 billion cubic meters. Seismic reconnaissance of big volume on exploration of deep horizons – three-dimensional seismology according to 3D methods as well as drilling of the first exploratory well up to 7000 meters deep using modern technology, are also planned.

Besides Shebelynska and Western-Shebelynska areas, there will be studied and processed geological and technical information, received as the result of production operation of SC “Ukrgasproduction” in six areas and research seismic reconnaissance. This work is to be done during 2007-2009.

Shell Company provides investments for the execution of the planned work in the amount of $100 mln. SC “Ukrgasproduction” provides geologic-geophysical data, which were received earlier, in particular the data of seismic reconnaissance and deep drilling, as well as dozens of drilled wells in the mentioned areas. Next stages of work will be financed by companies on an equal basis.

Reference: Agreement on joint activity was signed by SC “Ukrgasproduction” and “Shell Ukraine Exploration and Production” Company on the 8th of June 2006 in the Hague, the Netherlands. It presupposes the execution of work on exploration of deep horizons, situated in Kharkiv and Poltava oblasts.

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