Ukraine has announced a tender for the development of three more hydrocarbon deposits, including Hrunivske (Sumy and Poltava regions), Okhtyrske (Sumy, Poltava and Kharkiv regions), and Ichnianske (Chernihiv region) on the basis of production sharing agreements (PSA).
The corresponding announcements about the tender were published in the Uriadovy Kurier newspaper on August 3.
The area of Hrunivske deposit is 1,083 square kilometers, that of Okhtyrske some 672 square kilometers, and Ichnianske some 2,086 square kilometers. According to the terms of the tender documentation, approved at the end of 2018, the winners on the first and second fields will have to ensure the drilling of at least two exploratory wells and conduct 3D seismic surveys during the first stage of exploration (the first five years). The winner on the third lot will have to ensure the drilling at least three wells and conducting 3D seismic surveys.
The minimum investment for Hrunivske and Okhtyrske deposits is UAH 500 million UAH, and that for Ichnianske some UAH 900 million.
The PSA is valid for 50 years. The state’s share in profitable products should be at least 11% of its total volume, the maximum share of compensation products, due to which the investor will be reimbursed for his expenses, is 70% of the total production. Applications for participation in the tenders are accepted within three months from the date of publication of the announcement of the tenders.
