Ukraine Sheds Light on Offshore Auction Plans
Ukraine plans to offer two separate production-sharing agreements (PSAs) for offshore oil and gas acreage, the head of its state geological service Roman Opimakh told a conference in Kyiv on February 24, according to local press.
The geological service held a tender last year for a PSA for the 9,500-km2 Dolphin area in the Black Sea, resulting in several bids and an award to London-based Trident Resources. But this award was cancelled, after authorities concluded that bidders had not been given enough time to size up the asset.
The plan now is to offer PSAs for two separate offshore areas known as North Dolphin and South Dolphin, covering 8,300 km2 and 7,500 km2 respectively, Opimakh said. The decision was taken after negotiations with geologists and potential investors, he said.
Tender conditions should be approved in March, after which the competition will be prepared and initiated within two months.
"We proposed that the level of investment for each site be at least $60mn, that, is, these are the minimum obligations, but this is still in the process of discussion," Opimakh said.
Ukraine wants to encourage exploration in order to become self-sufficient in gas. It offered a total of 43 onshore blocks to investors last year, leading to 28 awards. Opimakh told NGW in December that a further 23 PSAs and concessions covering 25,000 km2 would be offered up in 2020.
Tenders for three new onshore PSAs could be launched in March, he said at the conference in Kyiv.