Oil & Gas

Three oil and gas reserve blocks sold in online auction for USD 5.1 million in Ukraine

Update March 18

The third round of oil and gas online auctions has been launched on March 18.

Nine onshore blocks were offered in three regions of Ukraine, covering over 1,260 sq. km. All licenses are proposed for exploration and production of hydrocarbons for a period of 20 years. The undiscovered oil and gas resources of all blocks are officially estimated as inferred (yet-to-find).

Online auctions will be carried on at the ProZorro.Sale e-platform. The company, which submits the highest cash bid will be awarded lease rights for a concession license.

Investors will have 90 calendar days to pass the registration and submit a bid by 18 of June, 2019. The names of the applicants are kept in the confidence till the end of the auction.

First licensing round took place on 6 March, 3 blocks attracted bids, 7 had no bids. The total amount paid is record-breaking for Ukraine – over UAH 141 million (~USD5.2 million). Three leading domestic gas producers became winners: Burisma Group (block №2), DTEK Oil & Gas (block №3), UGV (block №7). Second licensing round will be held on 2 May 2019.

More details at:

http://agpu.org.ua/upload/files/10155292118228.pdf?fbclid=IwAR1VmlUq3o8nHuOoPMiAXWkwGXy4e8AiGGODOIcsSi4MCiUHB7AbBNz5Y5o 3rd round release

http://goukrainenow.com– information about the 2019 Oil and Gas Licensing Rounds in Ukraine

 

A remarkable moment for the whole oil & gas industry in Ukraine: three concession blocks (Kharkiv and Poltava regions) have been sold March, 6 through the pioneer online actions.

The total amount paid is record-breaking – over UAH 140 million (USD 5.1 million) which is way more than the total initial bid for nine out of ten blocks offered by State Geological Service of Ukraine for the First licensing round.

Three leading domestic gas producers became winners: Burisma Group, DTEK Oil & Gas, Ukrgasvydobuvannya (UGV). Seven blocks had no bids and could be auctioned in the future.

Second Licensing round includes seven blocks, covering over 1,000 sq. km and will be held on 2 May 2019. The third one is planned to be announced shortly.

The Ukrainian government had also launched tenders for production sharing agreements (PSA) for 12 onshore blocks, adding that documents for nine of the blocks on total acreage of 11,600 sq km were already approved and that potential investors have until the end of May to place their bids.

The documents for the remaining three blocks will also have to be approved in the upcoming weeks, together with giant offshore block for nearly 10,000 sq. km in Black Sea shallow water area.

Ukraine has outlined a series of international licensing rounds through online Concession auctions and Production Sharing Agreements tenders. The 2019 licensing rounds offer 42 onshore blocks total covering almost 20,000 sq. km.

The State Geological Service of Ukraine released 30 onshore petroleum blocks for sale in online auctions at the public trading platform Prozorro.Sale. The total acreage of blocks is 4,630 sq. km.

The concession blocks will be auctioned in a series of licensing rounds. All parcels are located in proven petroleum provinces with well-developed midstream infrastructure and widely covered by geophysical surveys.

In the first round, announced on December 6, 2018, ten blocks were offered in five regions of Ukraine, covering over 1,810 sq. km. Licenses for nine of those promising blocks are proposed for exploration and production of hydrocarbons for a period of 20 years. The remaining parcel is for a 5-year exploration period.

The undiscovered prospective resources of ten blocks are officially estimated at 86,25 billion cubic meters of natural gas and 16,29 million tons of liquids. One block holds developed proven oil and gas reserves.

The initial price of most of the licenses is not exceeded USD 0.7 million. The company which submits the highest bid in terms of cash bonus will be awarded lease rights for a specific parcel.

There are also minimum exploration program requirements for each license, for instance: processing of legacy seismic data, conducting new seismic surveys and exploration drilling.

Bidders will have ninety calendar days to decide and submit their applications.

 

Full details at: www.goukrainenow.com

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