Production Sharing Agreement Ukraine

Asters has extensive experience advising international and domestic clients in the field of oil and gas extraction. Our experience in production sharing agreements is unique. In addition to upstream projects, we advise our customers to import natural gas into Ukraine and to related commercial and storage transactions. The PSA Act was passed by Parliament in 1999, but it has hardly been used by the state and investors. To date, only four PSAs have been completed for natural gas projects in Ukraine and hydrocarbon production in the underground has never begun. Vanco, Exxon Mobile and Eni lost projects due to the annexation of Crimea, Shell withdrew from a project due to the military conflict in eastern Ukraine, while Chevron withdrew for other reasons. the best programme of work, mainly on the complex exploration and securing of the petroleum company`s first production of production in relation to (i) the exploration and production of natural gas and gas condensate in the Poltava region of Ukraine; (ii) disputes over the licensing and ownership of gas-producing assets; “In meetings with President [Volodymyr Zelensky], we have constantly raised the issue of increasing our own production,” Shmyhal said. Austrian Crude Oil Research Company (RAG), An Austrian oil and gas company, as part of (i) the creation of an oil and gas joint venture in Ukraine; (ii) exploration, production, authorization, transportation, transit and export of natural gas; Rolls-Royce Power Venture Ltd. for (i) the production, transportation and transit of natural gas; (ii) product-sharing agreements; “Industry also needs government decisions – the signing of production-sharing agreements following tenders that took place more than a year ago, the introduction of incentives for unconventional gas production and the opening up of land users` access to the Black Sea.” Ukraine, whose gas production has been constant at about 20 Bcm/year over the past 25 years, has enormous untapped potential in its onshore blocks — both for conventional and unconventional resources — and in the Black Sea. Mr Naftogaz said he was ready to implement pilot projects in new production sectors to reduce the risk of such developments for the sector as a whole. “There is a need for an appropriate exploration phase, completion of exploration plans already partially implemented, and rapid start of production.

For its part, the government is doing everything in its power to do this work and we are also counting on the corresponding legislative initiatives,” he said. A major U.S. oil and gas company linked to issues related to a production-sharing agreement; Marathon Oil Company as part of offshore oil exploration and production in Ukraine on the basis of a product sharing agreement; OMV, an Austrian oil and gas company, through the creation of a joint venture with chornomornaftogas for the exploration and production of offshore gas; Most companies need a maximum of one year to complete all 3D seismic work and start drilling exploration. Actual oil and gas production is not likely to begin until late 2020 or early 2021. It is very important that the Ukrainian government move quickly to sign real PSA contracts with investors, so that additional oil and gas is available in the near future in order to support Ukraine`s energy independence efforts.