The Executive Director of the Association Artem Petrenko took part in the VIII International Oil and Gas Conference of the Newfolk oil and gas consulting centre, which is held on May 27-28 in Lviv. During his speech, which was dedicated directly to the PSAs, he highlighted the following:
«The 8 signed production sharing agreements and their successful implementation will become a new page in the history of the oil and gas industry of Ukraine. Investments in the development of large-scale onshore projects during the first five years will amount to $400 million. During this time, 37 exploration wells will be drilled and 3D seismic will be carried out on the territory of more than 3 thousand sq. km. Undoubtedly, the development of blocks under the PSA conditions will be a guarantee of growth of the Ukrainian gas production».
Artem Petrenko also spoke about the world experience of PSA implementation:
- For example, the largest gas field in the Mediterranean, Zohr, was discovered pursuant to the production sharing agreements. As of today, the field provides about 50% of all production in Egypt, which saves at least $3 billion in hydrocarbon imports.
- By virtue of the first PSA in Azerbaijan, which was designated as the "contract of the century", 158 bcm of natural gas were extracted in 25 years, $43 billion was invested in the development of the field. In total, the State Oil Fund of Azerbaijan received $143 billion in income from sales of hydrocarbons produced in this field.
- In Kazakhstan, in terms of The North Caspian Project, 5 new fields have been discovered and more than $150 billion of investments received. It is worth noting, that half of all goods and services used for the needs of well development and drilling are of local origin.
You may find detailed information containing the international PSA practices following the link: https://bit.ly/2Sr274R