Shell and Ukrgasvydobuvannya start drilling a second well in Kharkov region

Shell and Ukrgasvydobuvannya started drilling a second exploration well Novo-Mechebilovskaya-100 (Bliznyukovsky district, Kharkov region), under the joint venture agreement, informs Shell press office. The well is drilled to search for natural gas deposits in the packed sands, the work is scheduled to last for 9-10 months. The well will be vertical, its design depth is 5,000 meters. The project uses well borer made by Saipem international drilling contractor.

The size of the well site is 300 by 200 meters. Before the operation, the soil was removed and put around the perimeter of the site for the subsequent reclamation. There are 2,400 concrete slabs laid on the site, all produced in Kharkov region; there also is a 20-meter paved driveway.

According to the press office, Shell and Ukrgasvydobuvannya fully completed their 2013 local community social investment program. The program included repair of the road segment, repair of the heating system in Novonadezhdinsk school, restoration of street illumination on the territory of Novonadezhdinsk village council, purchase of medicines and materials for Bliznyukovska district hospital. The total investment amounted to 960,000 hryvnia.

"Drilling of the second exploration well is a part of phased exploration program. It is aimed at discovering the hydrocarbon potential of the territories that are subject to joint-venture license. Such estimation of Ukrainian gas potential requires targeted efforts, investments, new approaches and solutions. Novo-Mechebilovskaya-100 is the next step in this process,” said Graham Tiley, Shell Ukraine Country Chair and General Manager of Shell Ukraine Exploration and Production LLC.

The joint venture agreement was signed in 2006 and updated on September 1, 2011. It covers prospecting, exploration and production of hydrocarbons in the licensed regions (total area of about 1,300 square kilometers) in Kharkov region. Shell and Ukrgasvydobuvannya each hold 50% stake in the project. Under the agreement Shell is the project’s operator. In September 2013 Shell and Ukrgasvydobuvannya finished drilling the first exploration well in Pervomaisky district of Kharkov region. Upon completion of the initial exploration phase, Shell could spend some $200 million on the joint venture.

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