Ukrainian Geological Survey Sold Licenses for Two Oil and Gas Sites

by Vladyslava Zhabrovets
Thursday, October 21, 2021
Ukrainian Geological Survey Sold Licenses for Two Oil and Gas Sites

The use of resources of two plots was leased for $15.1 million

On October 20, during electronic auctions, the Ukrainian geological survey implemented two special permits for 20 years for the development of hydrocarbons for $15.1 million. The plots are located in the Sumy and Poltava regions.

According to the UGS, the company UkrGasVydobuvannya, which belongs to Naftogaz of Ukraine, won the tender for the South Rusanivka area (317.2 km² in the Poltava and Sumy regions), offering $11.6 million for it.

The product horizons of the site are likely to lie at a depth of 3-5 km, and the prospective gas resources are 3.3 billion m³.

Horizonty LLC (owned by Ukrainian and Czech businessmen Zynoviy Kozytskyy and Karel Komarek) won the auction by offering $3.4 million for the Zhukovska area (57.72 km² in the Poltava region). The productive horizons are likely to lie at a depth of 600–5500 m; resource assessment at the site has not been carried out.

Companies that have acquired licenses will pay taxes and rent for the use of mineral resources.

“Over the past year and a half, UGS has done tremendous work towards increasing its own production: it has launched large-scale hydrocarbon" rel="dofollow">projects on an area of ​​50 thousand km³ both on the shelf and on land. It also prepared 50 oil and gas facilities for the Investment Atlas for submission to electronic auctions,” said Roman Opimakh, сhairman of the Ukrainian geological survey.

Following the results of electronic trading in 2020, the UGS attracted $31.6 million of direct receipts to the state budget. In 2021, a plan was announced to receive at least $28.7 million.

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