The Cabinet of Ministers put the oil and gas site on the Black Sea shelf up for tender
The Cabinet of Ministers of Ukraine, in accordance with Resolution No. 271 of March 6, 2019, announced a tender for the development of hydrocarbons within the "Dolphin" area on the Black Sea shelf under the terms of a production sharing agreement (PSA).
The deadline for submitting applications for participation in the competition is two months from the date of publication of the announcement of the competition, i.e. June 12, 2019.
The period of validity of the PSA is 50 years with the right of extension, for the investor it is an open competition, the area is large - almost 10 thousand square kilometers. The winner of the tender must provide a geological study of the subsoil on the site, including the drilling of at least five wells during the first stage (five years) of geological exploration.
The minimum amount of investments to be made in this period will be determined based on the results of the tender but must be at least UAH 1.5 billion.
The maximum part of compensatory products, at the expense of which the investor can be compensated for his expenses, is 70% of the total volume of produced products. The state's share in profitable production should be at least 11% of its total volume.
In order to promote fair competition, persons who have special permits for the use of subsoil, but do not properly execute the work program on subsoil areas, are not allowed to participate in the competition.
The terms of the Product Sharing Agreements (PSA) offered to investors can be found at the following link:
https://www.kmu.gov.ua/ua/npas/pro-provedennya-konkursu-na-ukladennya-ugodi-pro-rozpodil-vuglevodniv-yaki-vidobuvatimutsya-u-mezhah-dilyanki-delfin?fbclid=IwAR2leq0MisgzUXOC9gkG8wGhqUDGp1aINLMrsLQwxi7saoG-qp5QihqKxZU
2. http://mpe.kmu.gov.ua/minugol/control/uk/publish/article?art_id=245358209&cat_id=193804&fbclid=IwAR2QecyoUDFy9IjhDbianGU8mKSjf8w-2zsImiBtFvAn3rBpdhpAqx8-8Pw
We will remind you that the Ukrainian Geological Survey announced the holding of open tenders in 2019 for the conclusion of the production sharing agreements (PSA) in 12 areas. On February 28, the government announced the start of tenders for 9 plots. Let's clarify that while at online auctions the only criterion for choosing a winner is the price, at PSA contests, the applications of Ukrainian or foreign investors will be evaluated according to 8 criteria.
As reported, the initiative to develop the Delfin area belongs to the company Frontera Resources, which is engaged in exploration and production of gas and oil. The total surface of the area is 9,772 thousand square km.
Frontera Resources Corporation, founded in 1996, is engaged in oil and gas exploration and production. The company's strategy consists in finding prospects for hydrocarbon production in the markets of Eastern European countries, which belong to the Black Sea basin. The company's confirmed natural gas reserves in Georgia amount to about 300 billion cubic meters.
The Cabinet of Ministers of Ukraine, Ministry of Energy and Coal, Interfax-Ukraine, Business Censor, State Geonadra