This spring energy companies be able to bid on 50-year production sharing agreements to explore and produce oil and gas in 12 fields

This spring energy companies be able to bid on 50-year production sharing agreements to explore and produce oil and gas in 12 fields, largely in western and eastern Ukraine. The government’s goal is to convert Ukraine from a nation that imports 40% of its gas needs to an energy exporter. During 5-year exploration phases, tenders stipulate minimum investments of $16-36 million. After recovery of exploration costs, the state expects to receive at least 11% of oil and gas. In anticipation of these production sharing agreements, several Ukraine energy funds were set up last year, notably a $250 million fund by SigmaBleyzer, the Houston-based investment company. Energy and Coal Industry Minister Igor Nasalik has estimated the 12 ‘PSA’s’ could draw $2 billion in investment.