Shell expands further in the Ukraine.

Shell Exploration & Production Ukraine Investments (I) B.V. has signed a non-binding Memorandum of Understanding (MOU) with Regal Petroleum Plc – increasing its position as a gas supplier in the Ukraine.

The MOU gives Shell a 51% interest in Regal Petroleum (Jersey) Limited. This is a wholly owned subsidiary of Regal Petroleum Plc, which indirectly holds the license for the Mekhediviska-Golotvschinska and Svyrydivske gas fields in Ukraine.

The MOU would make Shell the operator of these fields, in the Dnieper Donetsk sedimentary basin.

Patrick van Daele, General Manager of Shell Ukraine Exploration and Production 1 LLC, said: “The MOU is another important step in Shell’s development in Ukraine. The growth potential from the Mekhediviska-Golotvschinska and Svyrydivske fields is a clear fit with Shell’s strategy.”

Shell already has a presence in the Ukraine: as a supplier of gas via Shell Energy Ukraine LLC; operating 150 Shell-branded retail sites through a joint venture with OJSC Alliance; and investigating potential gas sites through an agreement with Ukrainian company, Ukrgazvydobuvannya.