JSC Ukrgazvydobuvannia and Vermilion Ukraine Exploration have submitted joint application for developing four fossil fuel fields under product sharing agreements (PSA).
According to information presented at a meeting of the interdepartmental commission for organizing the signing of PSA, these are two joint bids for Sofiyivska, Ivanivska, Zinkivska and Balakliyska.
Vermilion Ukraine Exploration is a resident representation of Vermilion oil and gas company based in Canada.
Ukrgazvydobuvannia, fully owned by Naftogaz Ukrainy, is the country’s largest gas producing company, providing about 75% of the country’s total gas production.
The partners of Concorde Capital investment company in the transaction for the purchase of assets of HeidelbergCement Ukraine were Vice President of PJSC Galnaftogaz Concern Vasyl Danyliak, as well as businessmen Ivan Shestak and Ihor Zavinovsky.
“The development of companies acquired from HeidelbergCement will be carried out by Ihor Mazepa together with the partners Ivan Shestak, Vasyl Danyliak, and Ihor Zavinovsky,” the press service of Concorde Capital told Interfax-Ukraine.
According to the decision of the supervisory board of PrJSC HeidelbergCement Ukraine, at the end of April Zavinovsky was elected head of the company for a term of three years. According to the report in the information disclosure system of the National Commission on Securities and the Stock Market, in the past five years he has held the post OF Commercial director of New Geodetic Technologies LLC, and does not own shares in HeidelbergCement Ukraine.
As reported, on May 14, 2019 Cyprus-based Overin Limited, associated with Concorde Capital, became the owner of a controlling stake (99.8308%) in PrJSC HeidelbergCement Ukraine.
The European Investment Bank (EIB) will provide grant assistance to the State Agency of Automobile Roads of Ukraine (Ukravtodor) to develop a feasibility study for the construction of the Lviv-Mukachevo-Uzhgorod highway with a branch to the Hungarian border, the agency’s press service has reported. “This corridor is very important for Ukraine, because the export flow to the countries of Southern and South-Western Europe is directed through it. In addition, the new road will also provide a stable communication with Zakarpattia region,” Oleksandr Kava, the adviser to the Ukravtodor head, said.
According to the report, the new road will connect with the Hungarian M3 highway through the Dyida checkpoint and the Slovak D1 highway through the Uzhgorod checkpoint.
The maximum speed on the highway will be 130 km/h.
“This road will reduce the trip time in the direction of Lviv-Mukachevo to an hour and a half instead of the current 3.5 hours,” the report says.
The Cabinet of Ministers of Ukraine on April 12 announced a tender to develop the Dolphin Black Sea shelf section under the product sharing agreement (PSA). Government resolution No. 70 dated April 12, 2019 has been published in the Uriadovy Kurier government’s newspaper. The term of the PSA is 50 years. The winner of the tender must provide a geological survey of the subsoil at the site, including the drilling of at least five wells during the first stage (five years) of geological exploration. The minimum investment that must be made in this period will be determined by the results of the tender, but must be at least UAH 1.5 billion.
The maximum part of compensation products, thanks to which the investor can be compensated for his expenses, is 70% of the total volume of production. The share of the state in profitable products should be at least 11% of its total volume.
In order to promote the holding of a fair tender, persons who have special permits to use subsoil but do not properly implement the subsoil programs are not allowed to participate in the tender.
As reported, the initiative to develop the Dolphin section belongs to Frontera Resources, engaged in the exploration and production of gas and oil.
Ukraine’s Minister of Energy and Coal Industry Ihor Nasalyk has stated that foreign companies are interested in developing hydrocarbon sites in Ukraine under the terms of product sharing agreements (PSA).
“I can say beforehand: there is interest from American, British, Norwegian and Canadian firms,” he told reporters after a government meeting.
As reported, Ukraine announced 12 tenders for signing production sharing agreements for the development of hydrocarbon deposits.
The following deposits are put up for auction: Hrunivsky, Varvynsky, Rusanivsky, Okhtyrsky, Buzivsky, Zenkivsky, Ivanivsky, Ichniansky, Balakleisky, Sofiyevsky, Berestiansky, and Uhnivsky. The fields are located in Ivano-Frankivsk, Lviv, Poltava, Chernihiv, Sumy, and Kharkiv regions.
The term of PSAs is 50 years. Applications for participation in the tenders are accepted within three months from the date of publication of the announcement of their conduct. It is assumed that the state’s share in profitable products should be at least 11% of its total volume, the maximum investor’s share is 70% of total production (until full reimbursement for investor expenses).
The Dutch Development Bank FMO will issue $10 million to Nibulon (Mykolaiv), one of the largest Ukrainian grain traders, for the development of river logistics capacities, according to the FMO’s website. “The project will support Nibulon’s strategy, mainly aimed at expanding and optimizing its river grain logistic capacities in order to increase grain trade, reduce the share of road and rail traffic,” the report says.
According to its data, the project will also allow Nibulon to increase export capacity by improving logistics and infrastructure. As reported, Nibulon plans in the next two years to reorient virtually all of its cargoes to Dnipro and transport 4 million tonnes of products per year by water, which will allow reducing the load on the roads.
Nibulon LLC was established in 1991. It is one of the largest operators in the grain market of the country.