Ukrainian natural resources: reforms to be continued

The increase of own oil&gas production is not only a contribution to the energy security of Ukraine but also an opportunity for the development of the economy, of the own energy market. This fact becomes more and more obvious, however, according to Roman Nitsovych, Research Director at DiXi Group, only in recent years, significant steps have been taken to implement this strategic course.

E.g., in March, at the first electronic auction, first special permits for oil&gas fields development were sold. The result is inspiring – according to the State Service for Geology and Mineral Resources, the starting price of 3 fields has tripled (from 45 to 141 million UAH). The second round is scheduled for May 2, the third – for June 18. In total, in 2019, 30 oil&gas fields with prospective resources of 130 bcm of gas shall be sold through auctions at ProZorro.Sale platform.

Another step is to conduct open tenders for the conclusion of production sharing agreements (PSAs) for 12 fields. On February 28, the government announced the launch of tenders for 9 fields. While at the e-auctions, the only criterion for selecting a winner is the price, at PSA tenders, the applications of Ukrainian or foreign investors will be assessed for 8 criteria.

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