Yuzivska licensed area covers the territory of 7 886 square kilometers within Dnipro-Donetsk basin. Tight sand gas extraction is planned at the Yuzivska area.
Shell was granted the priority right to sign product sharing agreement for Yuzivska area based on the results of the first tender for the priority rights to conclude PSAs for unconventional gas extraction projects in Ukraine, which was held in 2012.
Products sharing agreement between Shell Exploration and Production Ukraine Investments B.V., LLC Nadra Yuzivska and the state of Ukraine was signed on 24 of January 2013. The term of the agreement is 50 years. The text of the agreement was not made public due to confidentiality issues.
On 6 of March, 2013 State Service of Geology and Mineral Resources of Ukraine issued special permit for subsoil assets use on Yuzivska area for the 50 years period.
On 12 of September the Government of Ukraine and Shell signed the operational agreement complementing product sharing agreement for the extraction of hydrocarbon at Yuzivska area.
As for July 2014 Shell continues preparatory activities and baseline environmental impact assessment on Yuzivska area.
Yuzivska area is located on the territories of Donetsk (Krasnolymanskyi, Slovianskyi, Oleksandrivskyi, Kostiantynivskyi, Artemivskyi, Dobropilskyi and Yasynovatskyi districts) and Kharkiv (Balakliyskyi, Iziumskyi and Barvinkivskyi districts) regions. Detailed map of Yuzivska area is presented here.
The average population density in the administrative districts within Yuzivska area is about 24 person per square kilometer.
During 5 years of geological exploration works 15 exploration wells are planned to be drilled. The expected amount of investment at the geological exploration stage is USD 410 million.