Ukraine Puts Gas Blocks Up for Tender
Ukraine has issued tenders for nine gas blocks, local media reported February 26.
Bidders will compete for a chance to sign a 50-year production sharing agreement (PSA), the Kyiv Post reported. The move makes concrete resolutions approved by the government in January to tender twelve oil and gas blocks.
The PSAs are the first offered by Ukraine since 2012, noted analysts at CMS Russia at the time. Therefore, they “represent a significant development for the Ukrainian oil and gas sector,” the analysts added.
The long-awaited process of opening up Ukrainian gas production began in December, when 10 blocks of land with hydrocarbon reserves were put up for an electronic auction that will end in March, the Kyiv Post notes. Another 20 blocks are in process. Seven are already being auctioned, with a May 2 deadline.
The first 10 blocks opened for auction cover around 1,000km3 and are estimated to contain 86.25bn m3 of gas and 16.3mn mt of oil, according to the Association of Gas Producers of Ukraine.