The Cabinet of Ministers is preparing to hold a new competition for investors who wish to enter into agreements for the distribution of hydrocarbons in two promising oil and gas areas – Svychan and Mezhyhirya. Both areas are located in the Lviv, Ivano-Frankivsk, and Chernivtsi regions of Ukraine. This competition is being organized as part of cooperation with the United States of America in accordance with agreements on the development of mineral resources.
This is reported by Finway
Conditions for Investors and U.S. Participation
As noted by Ukraine’s Prime Minister Yulia Svyrydenko, relevant drafts of government resolutions have been prepared for the new competition. The main feature is the updated participation conditions: the partner from the U.S. will have the right to purchase the product, as well as a guarantee that other participants will not be offered more favorable conditions. This aligns with the provisions of the U.S.-Ukraine agreement on the establishment of an investment fund for the country’s reconstruction.
“The conditions have been updated – with the right for the U.S. partner to purchase the product and a guarantee that other participants will not be offered more favorable conditions. This is in line with the provisions of the U.S.-Ukraine agreement on the establishment of a reconstruction investment fund,” added Svyrydenko.
Audit of Subsoil Users in Strategic Deposits
In addition to announcing the competition, the government is initiating an audit of all subsoil users who have permits for the development of strategically important deposits. The Prime Minister emphasized that she has instructed the Ministry of Economy and the State Geological and Subsoil Service to check who is actually conducting extraction and who merely holds licenses without active operations. According to her, licenses for those sites where no real work is being done will be returned to auction to attract responsible investors.