Shell Exploration & Production Ukraine Investments has signed a memorandum of understanding with Regal Petroleum to acquire a 51% interest in Regal Petroleum Limited, a wholly owned subsidiary of Regal Petroleum.

Under the terms of the memorandum of understanding (MOU), Shell would become the operator of the gas fields in the Dniepr Donetsk sedimentary basin, where most of Ukraine’s gas and condensate production is located.

Patrick Daele, general manager of Shell Ukraine exploration & production, 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.