Canadian company Vermilion Energy would deal with the development of three oil and gas sites in Ukraine, as President of Ukraine Volodymyr Zelensky said at the meeting with Canada’s Prime Minister Justin Trudeau – Ukrainian media reports.
Ukraine is interested in strengthening trade, economic and investment cooperation with Canada. This was stated by President Volodymyr Zelenskyy during a joint briefing with Prime Minister of Canada Justin Trudeau on July 2 in Toronto.
“Yesterday, the Ukrainian company together with Canadian “Vermilion Energy” won the right to oil and gas fields,” said Vladimir Zelensky, President of Ukraine.
Potential reserves of the area are estimated at 148 billion cubic meters of natural gas, 3200 billion cubic meters of shale gas/gas of the central-basin type. The area can give an estimated annual production of more than 10 billion cubic meters.
The interest of foreign companies in the Ukrainian subsoil became obvious after two large-scale projects to attract investors to develop 9 areas on land and one on the Black Sea shelf. The total area of the plots exceeds 20 thousand square meters.
The results of the competition on the shelf will be announced no earlier than September.
What foreign companies claim to manage Ukrainian subsoil?
Vermilion Energy, the Canadian company, claims for four out of nine development projects on land on a PSA basis. The company has experience in the extraction of traditional and unconventional gas deposits.
Slovakian Nafta together with EPH, a vertically integrated energy-industrial holding, which owns 68% of the company (another 29% is owned by the state of Slovakia), also claims to Sofiyivska PSA Block. EPH is among the ten largest energy companies in Europe. The total installed capacity of generating facilities, including two NPPs located in Slovakia, exceeds 24.3 GW, and the annual production of electrical energy reaches 100.2 TWh.
Pretending to Varvynska Block, Sigma Bleyzer is the largest private equity fund operating in the country with assets of over $ 1 billion. The most successful and well-known project of Blazer is the creation of Volya Kabel telecommunication company, which has become the largest provider of television and the Internet.
Who else wants to produce gas?
Competition to foreign companies in the PSA competition consists of the largest Ukrainian gas producers. In particular, the company DTEK Naftogaz, which specializes in deep drilling (over 5 thousand meters). Since 2013, the company has increased its gas production in Ukraine three times. DTEK Naftogaz participates in tenders for Sofiyivska and Zinkivska PSA Blocks.
Ukraine’s well-known gas producers Geo Alliance Group of Viktor Pinchuk (claims for Sofiyivska Block), Ukrnaftoburinnia of Igor Kolomoysky, Vitaliy Homutynnik, and Pavlo Fuks (claims for Rusanivska and Zinkivska PSA Blocks) also take part in the competition.
Ukrnaftoburinnia also claims on the site “Dolphin,” located on the shelf. Semi-state enterprise Ukrnafta, co-owned by Kolomoysky, also takes part in the competition. Despite the difficult situation with tax debt and regulatory restrictions, the company increased production by 10.1% over 5 months of the current year, producing 481.5 million cubic meters of gas.
Ukrnafta filed applications for Rusanivska and Sofiyivska PSA Blocks. Eurogas Ukraine is one of the participants, but there is no information about it, it claims for Zinkivska Block.
New projects gave a huge boost to the service market.
Over the past three years, such players as Schlumberger, Halliburton, Baker Hughes GE, Weatherford, NOV, Bentec, Crosco, Honghua, National Oilwell Varco, Tacrom, Belarusneft have entered Ukraine over the past three years
June 13, 2019