Ukraine’s 2nd O&G Licensing Round Is Coming
The Second Oil and Gas licensing round in Ukraine will be held on 2 May 2019. The auction will be conducted online at ProZorro.Sale e-platform, providing an equal and transparent access for all participants.
Proposed 7 concession areas covering over 1 000 sq km are located in two proven petroleum provinces with well-developed midstream infrastructure and widely covered by geophysical surveys.
Dnipro-Donets basin (attached)
| Name of the block | Region | Acreage, sq.km | Type of the concession license | Duration, years | Initial price* |
| North-Efremivska | Kharkiv | 99,50 | E&P | 20 | UAH 11 656000 (~USD 432 000) |
| Dobrenska | Kharkiv | 122,23 | E&P | 20 | UAH 6 300 100 (~USD 233 000) |
| Opolonivska-1 | Chernihiv | 247,87 | E&P | 20 | UAH 6 406 600 (~USD 237 000) |
| Opolonivska-2 | Chernihiv | 230,51 | E&P | 20 | UAH 231 800(~USD 9 000) |
| Kaliuzhna-1 | Sumy | 162,36 | E&P | 20 | UAH 7 654 700(~USD 283 000) |
Pre-Carpathian basin (attached)
| Drohobytska | Lviv | 140,90 | E&P | 20 | UAH 15 528 650 (~USD 575 000) |
| Kadobnianska | Ivano-Frankivsk | 21,17 | E&P | 20 | UAH 1 542 050 (~USD 57 000) |
*In addition, the winner is obliged to purchase the respective geological data and pay for auction documents.
Terms of the auction:
The participant should be an Ukrainian legal entity – it could be entirely controlled by nonresident company. The bidder is mandated to pay the guarantee fee at 20% of the initial price of the bid.
Bidders have to submit an offer in one of electronic trading platforms, accredited by ProZorro.Sale (www.prozorro.sale/en). The names of the applicants are kept in the confidence till the end of the auction.
The participant with the highest price offer (cash bonus) wins the auction. If the winner refuses to pay, the bidder that takes the second place in the auction is considered the winner.
Results of the first round:
First licensing round took place on 6 March, 3 blocks attracted bids, 7 had no bids. The total amount paid is record-breaking for Ukraine –over UAH 141 million (~USD5.2 million). Three leading domestic gas producers became winners: Burisma Group (block №2), DTEK Oil&Gas (block №3), UGV (block №7).
On top of that, the Ukrainian government has opened a public tender for 9 blocks under a production sharing agreement (PSA), covering a total area of 11,600 sq km onshore Ukraine. Interested parties have to submit applications to the PSA Interagency Commission by 28 of May. Winning bidders will be notified by June 2019.
Useful links:
http://goukrainenow.com– information about the 2019 Oil and Gas Licensing Rounds in Ukraine
https://www.youtube.com/watch?v=xd2Hmx9dAMw&feature=youtu.be– video guide of online registration and bidding race example
Attachments
2nd Licensing round_Western Ukraine
2nd Licensing round_Eastern Ukraine
Please feel free to contact us if you need any further information.
Regards
Roman Opimakh
Executive Director
Association of Gas Producers of Ukraine
