PJSC Ukrnafta is waiting for applications from potential partners for the joint development of 21 fields by January 10, 2024, the company’s press service reports.
According to the company, these are 10 fields in the west and 11 in the east of Ukraine.
It is specified that Ukrnafta plans to fully unlock the potential of its fields with sufficient reserves but low production rates, so it expects its partners to be ready to invest funds and technologies in exploration and production.
“If we talk about 2P reserves, i.e. proven and probable reserves, it is more than 12 million tons of oil and more than 31 billion cubic meters of gas,” said the company’s director Sergiy Koretsky.
According to the press release, Ukrnafta has already prepared draft contracts based on the best international practices. Preference is given to Product Sharing Agreements. The company’s contribution will be the field and the right to use the existing production infrastructure, while the partner’s contribution will be a field development plan to intensify production and finance the relevant works.
The algorithm for applying and selecting potential investors is as follows: candidates declare their interest, go through compliance procedures, get access to the Virtual Data Room with detailed information about the fields, and submit proposals for development plans and terms of cooperation.
Ukrnafta then evaluates the proposals, negotiates and selects the winners separately for each field. The parties then agree on the final text of the production sharing agreement, followed by the Cabinet of Ministers, after which the development plan is implemented.
Profits will be distributed according to the agreed terms.
As reported, Ukrnafta, which has been fully controlled by the state since the end of 2022, has a strategic goal to double oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively. In 2023, the company plans to increase oil production by 5.8% (by 0.077 million tons) compared to last year to 1.447 million tons, and gas production by 0.3% (by 0.003 million cubic meters) to 1.04 billion cubic meters.
