“Unrealized”: The Cabinet of Ministers canceled a competition for production at the Dolphin offshore site

The Cabinet of Ministers of Ukraine at a meeting on Wednesday canceled a previously approved decision to launch a competition under the terms of a production sharing agreement (PSA) for the Dolphin offshore site.

This was announced by Minister of Energy and Environmental Protection Oleksiy Orzhel, BusinessCensor reports, with reference to Interfax-Ukraine agency:

“We recognized decision No.271 on launching the Dolphin PSA as unrealized, in other words we canceled the decision”, the Minister said.

As previously reported, Trident Acquisitions Corp. had been recognized as the winner of the development competition based on the production sharing agreement for the Dolphin hydrocarbon site on the Black Sea shelf. The term of the agreement on PSA conditions is 50 years.

Four companies applied for participation in the competition: American Trident Acquisitions Corp, American Frontera Resources Corporation (initiator of the competition for the development of the Dolphin site), Caspian Drilling International Ltd. controlled by the State Oil Company of the Republic of Azerbaijan (SOCAR) and one of the largest private gas producers in Ukraine, Ukrnaftoburinnya.

On August 1, Frontera Resources challenged the results of the competition for a PSA for the development of the Dolphin hydrocarbon section on the Black Sea shelf in the District Administrative Court. And Trident Acquisitions, which won the competition for the development of the Dolphin site, said it plans to challenge the Cabinet’s possible decision to announce a new competition for the development of this hydrocarbon site.

 

Ex-Prime Minister Volodymyr Groysman previously stated that the competition for gas production on the Black Sea shelf had not lived up to expectations, he had not attracted powerful world-class players to the Ukrainian market, so a new competition should be announced.

Tags: The Cabinet of Ministers, hydrocarbon production

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