We use cookies
to help provide you with a good experience on our website. By continuing to browse the website, you are agreeing to our use of cookies.

Ukraine launches third phase of landmark exploration round

BLACK SEA
OIL & GAS

Ukraine launches third phase of landmark exploration round

Ukraine has launched the third phase of its landmark international bidding round, part of the country’s efforts to boost domestic gas production and reduce its import dependency – S&P Global reports.

In the third phase, nine onshore blocks are being offered — unexplored blocks with no resource estimates — with the auction set to take place on June 18.

It follows the first-round auction earlier this month — the first of its kind — which saw three blocks awarded out of 10 on offer.

A second round — due to take place on May 2 — is offering a further seven blocks. The total 26 blocks offered leaves four for future auction out of the original 30 earmarked for sale.

In addition to the auctions, the government is also offering nine onshore blocks under production sharing agreement (PSA) tenders.

The nine blocks cover a total area of 11,600 sq km, with winning bidders to be announced in June.

“The third round of online auctions has been launched with nine onshore blocks offered in three regions of Ukraine, covering over 1,260 sq km,” the Association of Gas Producers of Ukraine said.

All licenses are for a period of 20 years.

Earlier this month, Ukraine awarded exploration licenses for three onshore blocks following the first phase of the round to private Ukrainian upstream companies Burisma and DTEK, and the country’s biggest gas producer, state-owned UkrGasVydobuvannya (UGV), a subsidiary of Naftogaz Ukrayiny.

The blocks awarded were the Dubrivsko-Radchenkivska block in the Poltava region and the Svitankovo-Lohivska and Pivdenno-Kobzivska blocks in Kharkiv.

Kiev has the ambition of achieving gas self-sufficiency in the coming years — raising production levels to meet gas demand currently running at some 28 Bcm/year.

But Ukraine has struggled to attract international investors into its upstream in recent years, not least due to the conflict in the east of the country.

International majors such as Chevron and Shell came to Ukraine in the early 2010s in an attempt to develop the country’s unconventional gas resources, but none remain.

The new auctions are being held on an open electronic platform to ensure full transparency following accusations of wrongdoing in previous contract awards to upstream companies in the country.

Relevant news

BLACK SEA
OIL & GAS
UAH 1bln to the State Budget of Ukraine from Open Electronic Bidding by the End of the Year
The State Service of Geology and Subsoil of Ukraine plans to submit a total of 150 investment proposals for open electronic bidding.
BLACK SEA
OIL & GAS
Naftogaz attracts international investor to increase gas production in depleted fields
The partnership between Naftogaz and Expert Petroleum will generate at least an additional 300 mcm of gas within five years from 13 small fields in Western Ukraine.
BLACK SEA
OIL & GAS
Drop in Russian gas supply to Ukraine could affect Romania
ANRE reported
BLACK SEA
OIL & GAS
Trident Acquisitions offers $1 bln of investment in in tender to develop Black Sea shelf section via PSA
BLACK SEA
OIL & GAS
Vermilion, Aspect and EPH submitted bids for oil and gas acreage in Ukraine
Nine blocks were opened for PSA tenders in February 2019