The government has decided to hold a tender for the right to produce hydrocarbons within the Dolphin area under the terms of a production sharing agreement. The State Service for Geology and Subsoil of Ukraine prepared the field for investors. It is reported by the State Service of Geology and Subsoil of Ukraine.
The site is located in the northwestern part of the Black Sea continental shelf. Both Ukrainian and foreign investors will be able to take part in the tender. The selection will be made according to the procedure of a transparent competition, in which a wide range of companies will be able to take part.
“For the state such a tender means attracting at least 1.5 billion UAH of investment in the search and production of oil and gas in Ukraine. And for an investor, this is an open tender, a large area specifically for this site is 10 thousand square km, the term of the agreement is 50 years with the right of renewal. Thanks to the tenders on Production Sharing Agreement and electronic trading, we will be able to increase our own natural gas production, which will lead to a decrease Ukraine’s dependence on natural gas imports”, said the Head of the State Service for Geology and Subsoil of Ukraine, Oleh Kirilyuk.
The state share in the profitable product should be at least 11% of its total volume, and the maximum investor's share – 70% of the total production, according to the prescribed conditions.
The winner of the tender will be determined on June 12, 2019. He will have to provide a geological survey of the subsoil at the site, including the drilling of at least five wells during the first five-year phase of exploration.
The Head of the State Service for Geology and Subsoil of Ukraine Oleh Kirilyuk said that among the 8 points of obligations for the investor, three points are very important:
- to give preference to goods, works and services of Ukrainian origin under equal conditions regarding price, deadline, quality and compliance with international standards;
- to hire workers mainly from the citizens of Ukraine;
- to register its permanent establishment on the territory of Ukraine, if the company is a non-resident of Ukraine.
It was reported earlier that on March 6, the first electronic auction for the sale of special licenses for the use of subsoil was held.