Over $430 million to be invested in the exploration of oil, gas fields in Ukraine

7/2/2019

KYIV -- The results of nine international PSA tenders, covering 11.400 km2 of onshore acreages, have been concluded by Intergovernmental Commission on July 1.

Seven companies have been selected as the winners: national UGV grabbed two blocks (Buzivska, Betestianska), also it took 2 blocks more together with Canadian Vermilion Energy (Balakliyska, Ivankivska), American Aspect Energy won the tender on sizable Varvinska block, four Ukrainian producers Geo Alliance, UNB, DTEK Oil & Gas, and Zakhidnadroservice made the best bids on Sophiivska, Rusanivska, Zinkivska, and Ugnivska blocks.

The winners are taking five years commitments to invest over $430 million in the processing of 3D seismic (3,790 km2), drilling of 39 exploration wells, and recovering the legacy idle wells.

The companies will pay the royalties (1.25% and 2% for natural gas and liquids, respectively), and share the part of production with the Government, when the cost oil is accounts for 64-70%, and share of State in profit oil is accounts for 12% to 35%, and can be increased, based on R-factor.

The Government has up to two months to approve the results, then the winners will have one year to draft and sign the final deals.

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