Under the $10bn deal that drew attention of the industry, Shell and Ukraine’s state-owned firm Nadra Yuzivska have equal shares in the enterprise, 50% each.
Commenting on the signing of agreement, Ukrainian President Viktor Yanukovych said "A new project has been born. This is just the beginning, we shall continue this cooperation."
The latest deal is anticipated to help Ukraine increase its domestic gas production, create jobs, boost state budget revenue, and lift the economy.
Reuters noted that the 50-year contract is "the biggest contract yet to tap shale gas in Europe," and added that the deal would help the country reduce its dependence on Russia for energy.
In May 2012, Shell had won the right to explore gas in Yuzivske gas field in Ukraine, while in August 2012, Shell along with ExxonMobil, Romanian OMV Petrom and Nadra have received joint rights to develop underwater deposits at Ukrainian deep marine shelf field under the Black Sea.
