The State Geological Service of Ukraine released 30 onshore petroleum blocks for sale in online auctions at the public trading platform Prozorro.Sale. The total acreage of blocks is 4 630 sq. km.
The concession blocks will be auctioned in a series of licensing rounds. All parcels are located in proven petroleum provinces with well-developed midstream infrastructure and widely covered by geophysical surveys.
In the first round, announced on December 6, 2018, ten blocks were offered in six regions of Ukraine, covering over 1 810 sq. km. Licenses for nine of those promising blocks are proposed for exploration and production of hydrocarbons for a period of 20 years. The remaining parcel is for a 5-year exploration period.
The prospective resources of ten blocks are officially estimated at 86,25 billion cubic meters of natural gas and 16,29 million tons of liquids. One block holds developed proven oil and gas reserves.
The initial price of most of the licenses is not exceeded USD 0.7 million. The company which submits the highest bid in terms of cash bonus will be awarded lease rights for a specific parcel. There are also minimum exploration program requirements for each license, for instance: processing of legacy seismic data, conducting new seismic surveys and exploration drilling.
Bidders will have ninety calendar days to decide and submit their applications. The first online auction will take place on March 6, 2019.