Ukraine relaunches tenders for hydrocarbon distribution at Mezhyhirske and Svichanske blocks – PM
The Cabinet of Ministers of Ukraine has decided to relaunch tenders for hydrocarbon distribution at the Mezhyhirske and Svichanske blocks, Prime Minister Yulia Svyrydenko announced Thursday on Telegram.
"The terms have been updated – with a U.S. partner's right to purchase production and a guarantee that no other participants will be offered more favorable conditions. This fulfills provisions of the U.S.-Ukraine agreement on establishing a Reconstruction Investment Fund," she wrote.
As reported earlier, in early April the Cabinet approved the holding of tenders for production sharing agreements (PSAs) within the Mezhyhirske and Svichanske blocks in western Ukraine, based on proposals from the Interagency Commission on the Organization of Conclusion and Implementation of PSAs for oil and gas-bearing subsoil areas.
The Mezhyhirske block spans the Stryi, Sambir, Lviv, Yavoriv, and Sheptytsky districts of Lviv region; the Kalush, Ivano-Frankivsk, and Nadvirna districts of Ivano-Frankivsk region; and the Vyzhnytsia district of Chernivtsi region.
The Svichanske block covers the Stryi and Sambir districts of Lviv region; the Verkhovyna, Kalush, Ivano-Frankivsk, and Nadvirna districts of Ivano-Frankivsk region; and the Vyzhnytsia district of Chernivtsi region.
In late May, Artem Petrenko, Executive Director of the Association of Gas Producers of Ukraine, said that tender documentation for PSAs at the Mezhyhirske and Svichanske blocks – covering parts of Lviv, Ivano-Frankivsk, and Chernivtsi regions – would be published soon.
"There are two potential PSAs for which the process has begun and tenders have been launched. The Energy Ministry, as the working body of the relevant interagency commission, and the commission itself must now approve the tender documentation. Ukrainian and foreign companies will have three months to submit applications," he said.
According to Petrenko's presentation, the Mezhyhirske block covers 1,500 sq. km, and the Svichanske block 1,100 sq. km.