KIEV, March 19 International energy major Royal
Dutch Shell decided to break off talks over
participation in the development of an offshore gas field in
Ukraine in January, a company spokeswoman said on Wednesday.
"In January 2014, Shell exited negotiations on a production
sharing agreement (PSA) related to the Skifska block in the
deepwater shelf of the Black Sea," the spokeswoman said.
"Shell had expected that the PSA would be signed in 2012 or
2013, but unfortunately it didn't happen," she said, adding that
the company continues to work in other energy projects in
Skifska, predominantly a gas field, was estimated to hold
reserves of 200 to 250 billion cubic metres (bcm) of gas and was
expected to eventually produce 5 bcm a year.
Ukraine picked a consortium led by ExxonMobil and
Shell to develop its Skifska gas field in August 2012, but talks
on details were ongoing. The government also picked Shell and
Chevron as partners in projects to explore and develop
two potentially large onshore shale gas fields.
(Reporting by Natalia Zinets; writing by Vladimir Soldatkin)