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Kharkiv – Oil company Shell is ready to use Ukrainian-made pipes if the necessary amount is provided with no quality issues, Ukrainian Ecology and Natural Resources Minister Oleh Proskuriakov has said in Kharkiv.

“We have this quality, and we will drill with Ukrainian pipe. But just the amount of exploratory drilling, not commercial [drilling], will be great, and our producers will need to be ready for this. If they are ready, the maximum percentage of pipe made in Ukraine will be used, whether it is drill pipe or pipe for the building of trunk and local gas pipelines,” Proskuriakov said.

Shell will use services, work, and goods of at least 80% Ukrainian origin during the developing of the Yuzovska field, he said.

“The agreement says that at least 80% of services, work, and goods… will be of Ukrainian origin. These are jobs, the development of the economy, social sphere and the reduction of the gas price, which is very important. It’s very important for the industrial region, as this is the cash cost and competitiveness of goods,” the minister said.

As reported, in June 2012, Shell complained about the quality of Ukrainian pipes to Prime Minister of Ukraine Mykola Azarov. The prime minister proposed the creation of a joint commission to resolve the issue.

“I proposed the creation of a joint commission, conduct of tests, and if we see that the quality of our pipes is not suitable, we will import them,” he said.

Shell drew attention to its strict requirements for the quality of the pipes that will be used in joint work with Ukrgazvydobuvannia during the drilling of a deep well (over 5 kilometers).

“The gas is deposited deeply in conditions of high layer pressure and Shell’s standards for the quality of pipes for such drilling are very strict, as this is important for safe drilling without doing damage to the public, existing infrastructure and the environment. The standards require buying pipes only from producers that can confirm their ability to produce pipes with international certificates. At present, there are no Ukrainian companies among pipe producers who are fully in line with the requirements,” Shell said.

The company said that it is ready to switch to Ukrainian-made pipes if the proper quality level is reached.