Ukraine announces tenders for production sharing agreements for Mezhyhirska and Svichanska hydrocarbon fields

The Ministry of Energy of Ukraine has announced tenders for the conclusion of agreements on the distribution of hydrocarbons that will be extracted within the Mezhyhirska and Svichanska subsoil areas, which belong to the western oil and gas region of Ukraine, with a total area of 2,388 sq km with prospective and forecast resources of 54.9 million tonnes of equivalent fuel.

"The minimum amount of investments to be attracted during the first stage of geological exploration works is determined by the results of tenders and must be no less than UAH 1 billion for each subsoil area," the State Service of Geology and Subsoil of Ukraine noted.

According to the terms of the tenders, the agreements are concluded for a period of 50 years from the date of their signing. Ukrainian and foreign companies, except for representatives of the state carrying out armed aggression against Ukraine, can participate in the tenders; applications for the tenders are accepted until 16:00 on December 4 of this year.

The Mezhyhirska area, with a total area of 1,515 sq km, is located within Lviv, Ivano-Frankivsk and Chernivtsi regions. The resource base in categories C3+D (class codes 333+334) is 21.9 million tonnes of equivalent fuel, the service specified.

The Svichanska area, with a total area of 873 sq km, is located within Lviv, Ivano-Frankivsk and Chernivtsi regions. The resource base in categories C3+D (class codes 333+334) is 33 million tonnes of equivalent fuel.

According to the terms of the competitions, the volume of total investments, including those necessary to ensure industrial development, is determined by the results of the competition. All manufactured products until the moment of distribution between the state and the investor belong to the state. The maximum part of the compensatory products, at the expense of which the investor will be compensated for his expenses, is 55% of the total volume of manufactured products until the investor's expenses are fully reimbursed.

The share of the state in the profitable products should be: in case of exceeding the accounting costs subject to reimbursement above the maximum amount of compensatory products - 35% to the state and 65% to the investor; otherwise - 65% to the state and 35% to the investor.

The participant of the competition must pay UAH 500,000 for it to the account of the Ministry of Energy.