Royal Dutch Shell, Chevron, and Exxon Mobil are likely to reassess deals to drill in Ukraine following the political crisis and parliament’s removal Saturday of president Viktor Yanukovich.
Ukraine has been reliant on Russia for gas.
Gazprom, the Russian gas monopoly, has charged Ukraine more than customers in the rest of Europe. And it has used gas supply to bolster or oppose politicians there.
“Shell plans to drill as many as 15 wells over the next five years to appraise the potential of the Yuzivska field, spread over 8,000 square kilometers (3,100 square miles) of eastern Ukraine. Spending on the project could rise to $10 billion if it reaches production, the government said last year,” Bloomberg said.
Shell said its operations in Ukraine haven’t been affected by the unrest.
Chevron has an agreement for the Oleska shale formation. It had pledged to spend $400 million on drilling there.
In a statement, Chevron said it is closely monitoring the situation in Kiev and has taken appropriate precautions to ensure the safety of staff and their families.
“Exxon was close to signing an agreement to drill exploration wells in the Skifska area of Ukraine’s part of the Black Sea before the current crisis erupted. The deal, which would have seen Exxon commit $735 million to drill just two offshore wells, remains in limbo,” Bloomberg said.