By John O’Doherty in London and Roman Olearchyk in Kiev
Published: November 22 2007 02:00 | Last updated: November 22 2007 02:00
Royal Dutch Shell has signed a preliminary $410m agreement to take a 51 per cent interest in two Ukrainian gas fields controlled by a subsidiary of Regal Petroleum, the Aim-listed oil and gas group founded by Frank Timis.
Under the terms of a non-binding memorandum of understanding, Shell will pay $50m for a 51 per cent stake in the Mekhediviska-Golotvschinska and Svyrydivske gas fields, Regal’s main assets, and invest an initial $360m to develop the two fields 180km north-east of Kiev.
Regal signed the agreement with Shell after ending talks with MND Exploration and Production, a private Czech oil company, which had proposed spending $330m in exchange for majority control of the Ukrainian subsidiary.
The agreement marks the continued rapid expansion of Shell in Ukraine, which remains heavily reliant on Russian imports but is believed to hold significant hydrocarbon reserves.
Regal shares rose 6½p, or nearly 4 per cent, to 178½p in morning London trading yesterday.
“The interest of Shell demonstrates the underlying value of our assets in Ukraine and further underpins the future potential in these assets and in the company,” said Francesco Scolaro, chairman of Regal.
Shell has moved fast to expand its presence in Ukraine, making it the only world energy major with a significant presence in the former Soviet republic.
Last year, Shell signed an exploration agreement with Ukraine’s state-owned Ukrgazvydobuvannya to explore eight licensed areas in the Dniepr Donetsk Basin.
This year, the group established a downstream presence in Ukraine through a joint venture with Moscow-based Alliance Group to operate 150 Shell-branded petrol retail sites. Shell has also established a domestic natural gas trading company in Ukraine.
“The growth potential from the MekhediviskaGolotvschinska and Svyrydivske fields is a clear fit with Shell’s strategy,” said Patrick van Daele, general manager of Shell Ukraine Exploration & Production.
Regal’s Ukrainian assets were in recent years at the centre of a complicated court battle, which was resolved last December.
Copyright The Financial Times Limited 2007
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
