$430 million to be invested in oil, gas extraction in Ukraine

Source : 112 Ukraine

Ukrainian, American, and Canadian companies will explore the fields
20:19, 1 July 2019

Open source

American, Canadian, and Ukrainian companies will invest $430 million in the exploration of oil and gas fields. Nine fields were allocated between seven companies within the competition as Association of Gas Producers of Ukraine reported.

14 companies participated in the competition, while four of them are foreign investors. Seven companies, which proposed the best offers, were established by the inter-department commission of Energy Ministry. Nine areas with a total square of 11,400 square meters were allocated between them.

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“Ukrgazvydobuvannya won in two areas: Buzyvska and Berestyanska; besides, the joint applications of Ukrgazvydobuvannya and Canadian Vermillion Energy at Balakliya and Ivankiv area were recognized the best. American company Aspect Energy won the competition at Varvynsk block. Four Ukrainian gas extractors Geo Alians, DTEK, Ukrnaftaburinnya, and Zakhidnadraservis won at Sofiivska, Rusanivska, Zenkivska and Ugnivska areas consequently,” the message said.

The company will be obliged to hold the seismic works and drill 39 test borehole for five years as well as restore the objects which were earlier frozen. The total sum of the investments will surpass $430 million.

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The companies are also obliged to pay resources rent and pass some part of extracted fossils.

It is expected that the government will approve the winners for two months and then the agreement will be concluded between the government and local authorities during a year.

As we reported before, the Russian Federation placed a ban for export of petroleum and petroleum products, including coal, petroleum, and petroleum products to Ukraine.

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