Project Profile
Value: US$10 billion
Location: Eastern Ukraine
Reserves: 70.8 trillion cubic feet
Production of gas: 960 million cubic feet/day
Discovery: 2010
Start-up Year: 2017
The Yuzivska gas field is a Ukrainian natural gas field that was discovered in 2010. It will begin production in 2017 and will produce natural gas and condensates. The total proven reserves of the Yuzivska gas field are around 70.8 trillion cubic feet (2000×109m³) and production is slated to be around 960 million cubic feet/day (27.4×106m³). The total exploration investment is expected to range between US$250-300 million. Ukraine has signed an agreement clearing the way for Shell to begin exploration of the Yuzivske (Yuzivska) gas field in the east of the country. The agreement signed under last year’s framework deal on the block enables Shell to invest US$500 million in geological exploration of the area, involving conventional, tight and shale gas. The overall investment in exploration and infrastructure of the acreage has previously been estimated at US$10 billion. First gas extraction was envisaged in 2015, with total resource potential running to between three and 3.5 trillion cubic metres of gas deposits. Shell and Ukraine’s Nadra Yuzivksa are to participate with two equal shares in the development, but depending on the actual amounts of extracted gas, 30% to 60% of the profits would go to Ukraine.
Operators:
Shell: Operator with 50% interest
Nadra Yuzivksa: 50% interest