Shell and public joint-stock company Ukrgazvydobuvannia will terminate their production sharing agreement (PSA) on the exploration and extraction of fossil fuel in Kharkiv region.

Shell's press service reported on Thursday that Shell and Ukrgazvydobuvannia had finished prospecting and exploration under the agreement. Two wildcat wells were drilled: Biliayivska-400 and Novo-Mechebillivska-100 (Pervomaisk and Blyzniuky districts of Kharkiv region).

The result of drilling helped reach the exploration stage goals set under the agreement: the collection, processing and assessment of geological data from the fields located in the cooperation zone.

"Based on the data received, the sides agreed that further operation under the project is not economically justifiable and decided to terminate the agreement," reads the press release.

At present the wells are being prepared for liquidation. All works were carried out in line with the requirements of Ukrainian law, international nature protection standards and Shell standards.

Shell said that during the project's operation the social investment program was fulfilled in full. Rural communities in Pervomaisk and Blyzniuky districts received assistance of around UAH 2.7 million.