Frontera Ukraine11 Mar 2019 13:20
Frontera Resources returns to the topic of hydrocarbon production in Ukraine.
Of interest to the company is the Dolphin site, located in the north western part of the Black Sea’s continental shelf.
At the suggestion of Frontera Resources, Ukraine may hold a tender for the conclusion of a production sharing agreement ( PSA ) for the Dolphin subsoil plot.
The corresponding draft resolution was discussed at a meeting of the Cabinet of Ministers of Ukraine on March 6, 2019.
The head of the Ministry of Energy and Coal of Ukraine I. Nasalik made a report on the competition for the conclusion of the PSA for the Dolphin section.
The total area of ??the Dolphin subsoil site is 9,772 thousand km 2 .
The terms of the competition stipulate that the minimum investment should amount to 1.5 billion UAH. ($57m)
The amount of total investment required to ensure industrial development will be determined by the results of the competition.
The state's share in profitable products should be at least 11% of its total volume, the maximum investor's share - 70% of total production.
The winner of the competition for the development of a PSA site will have to provide a geological study of the subsurface site.
In particular, during the first 5-year stage of exploration ( GEW ), at least 5 wells should be drilled in the area.
The term of the PSA is 50 years.
In 2017, the interest of Frontera Resources shifted towards shelf projects in Ukraine.
So, with the Ministry of Energy and Coal Industry of Ukraine, the company discussed a project for the search and production of hydrocarbons in the subsoil area in the western part of the Black Sea shelf under PSA terms.
Then the Interdepartmental Commission on the organization of the conclusion and execution of the PSA on the company recommended to work out the possibility of filing a joint appeal with Chernomorneftegaz, which has special permits for the use of subsoil in the Odesskaya and Bezymyannoe areas.
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