The results of 9 international PSA tenders, covering 11.400 sq km of onshore acreages, have been concluded today by Interagency Commission.

Seven companies have been selected as the winners: national UGV grabbed 2 blocks (Buzivska, Betestianska), also it took 2 blocks more together with Canadian Vermilion Energy (Balakliyska, Ivanivska), American Aspect Energy won the tender on sizable Varvinska block, four Ukrainian producers Geo Alliance, UNB, DTEK, and Zakhidnadroservice made the best bids on Sophiivska, Zinkivska, Rusanivska and Ugnivska blocks.

The winners are taking 5 years commitments to invest over $430 million in the processing of 3D seismic (3 790 sq km), drilling of 39 exploration wells, and recovering the legacy idle wells. 

The companies will pay the royalties (1.25% and 2% for natural gas and liquids, respectively), and share the part of production with the Government, when the cost oil accounts for 64-70%, and share of State in profit oil accounts for 12% to 35%, and can be increased, based on R-factor.

The Government has up to 2 months to approve the results, then the winners will have one year to draft and sign the final deals. 

Nine PSA tenders have been officially started in February, and 23 bids were submitted by 14 companies, 4 among them were foreign companies.