Oil companies Royal Dutch Shell and Chevron Corp have won the Ukrainian public bid to develop shale gas fields in Ukraine, its Prime Minister announced in an interview with Euronews.
The fields in Yuzivske and Oleske are expected to provide the country with up to 10% of its natural gas by 2020, according to reports.
The estimated $370 million (£230 million) investment in the project is expected to grow if the gas fields prove to be commercially viable.
Ukraine potentially has gas resources of 1.2 trillion cubic metres, according to the US Energy Information Administration. Its figures suggest Ukraine has Europe’s third largest shale gas reserves at 42 trillion cubic feet, after France and Norway.
Ukraine is said to have plans to extract four to five billion cubic metres of shale gas a year by 2020, with extraction kicking off from 2018-2019.