Ukrnafta proposes joint development of 21 fields
MOSCOW. Oct 9 (Interfax) - PJSC Ukrnafta has invited potential partners to submit applications for the joint development of 21 fields by January 10, 2024, Ukrainian media report, citing the company's press service.
The company said 10 fields were in the west and 11 in the east of Ukraine.
Ukrnafta plans to fully unlock the potential of its fields with sufficient reserves but low production rates, so it expects partners to be willing to invest money and technology in exploration and production.
"If we talk about 2P category reserves, that is, proven and probable reserves, this is more than 12 million tonnes of oil and more than 31 billion cubic meters of gas," said company chief Sergei Koretsky.
According to the press release, Ukrnafta has already drafted agreements based on the best world standards. Preference is given to production sharing agreements. The company's contribution will be the deposit and the right to use the existing production infrastructure, and the partner's contribution will be a plan for the development of the deposit to enhance production and finance the relevant work.
The rules for submitting applications and selecting potential investors are as follows: candidates express interest, go through compliance procedures, gain access to the Virtual Data Room with detailed information about the fields, and submit proposals on development plans and terms for cooperation.
Ukrnafta then evaluates proposals, holds negotiations and selects winners separately for each field. The parties agree on the final text of the production sharing agreement, then the government, after which the development plan starts to be carried out.
Profits will be distributed according to agreed terms.
Ukrnafta, which has been under the state's full control since the end of 2022, has the strategic goal of doubling oil and natural gas production by 2027, to 3 million tonnes and 2 billion cubic meters respectively, reports have said. Ukrnafta plans to increase oil production 5.8% to 1.45 million tonnes and gas 0.3% to 1.04 billion cubic meters in 2023.