Ukrnafta invites partners to joint development of deposits

Ukrnafta PJSC offers 21 fields for joint development and invites investment and production companies to cooperate, the company's press service reports.

It is talking about 10 deposits in the west and 11 in the east of Ukraine.

The company plans to fully develop the potential of its existing deposits with sufficient reserves, but low production rates, so it expects partners to be ready to invest funds and technologies in exploration and production.

"If we talk about reserves of category 2P - i.e., proven and probable reserves - it is more than 12 million tons of oil and more than 31 bcm of gas," - notes the director of Ukrnafta, Serhii Koretskyi.

The company has prepared contract options based on global models. Preference is given to the Product Sharing Agreement (PSA). The company notes that Ukrnafta's contribution will be its own existing field and the right to use the existing mining infrastructure, and the partner's contribution will be a developed field development plan for the intensification of production and financing of relevant works.

The algorithm for submitting applications and selecting potential investors is as follows:

• candidates declare their interest;
• compliance procedures are carried out;
• get access to the Virtual Data Room with detailed information about deposits;
• Ukrnafta evaluates proposals, conducts negotiations, and selects winners separately for each field;
• the parties agree on the final text of the contract on product distribution;
• the Government approves the agreement;
• implementation of the development plan begins;
• the profit is distributed according to the agreed terms.

Applications are accepted until January 10, 2023.