Kinstellar Energy & Natural Resources Digest Ukraine, February 2019 In Review

MARCH 2019 – KINSTELLAR ENERGY DIGEST UKRAINE, FEBRUARY 2019 IN REVIEW

OIL & GAS: Ukraine introduces daily gas balancing as part of the natural gas market reform

From 1 March 2019, Ukraine's gas transmission system operator, Ukrtransgaz, has implemented daily gas balancing measures on the natural gas market, which is a major step towards its reform.

The start date for daily gas balancing was set as 1 March 2019 by the Resolution No. 1573 of Ukraine's National Energy and Utilities Regulatory Commission dated 30 November 2018.

OIL AND GAS: PSA tender documentation for nine oil and gas fields has been approved

On 28 February 2019, Ukraine's Ministry of Energy and Coal Mining published calls to enter into production sharing agreements ("PSA") and published the tender documentation for nine hydrocarbon fields: Balakliyska, Berestianska, Buzivska, Ivanivska, Rusanivska, Sofiyivska, Ungivska, Varvynska and Zinkivska.

According to the tender documentation, the deadline for submitting applications and supporting documents is 5:30 pm on Tuesday, 28 May 2019.

To apply, an applicant submits a sealed set of documents (the "Application") together with a supporting letter and proof of payment of the participation fee, which is UAH 300,000 (approximately EUR 9,810 or USD 11,200). The Application must be also submitted in electronic form. The documents submitted must be in the Ukrainian language or translated into Ukrainian.

The PSA Interagency Commission is a special state agency responsible for the entering into and executing of PSAs. The Commission will reject Applications if no evidence of payment of the participation fee is enclosed. After the deadline the Commission opens the Applications to check whether all required information and documents have been provided; if not, the Commission adopts a decision by which it rejects the application on the basis of incomplete documentation.

The Applications will be evaluated within a month from the application deadline using a score-based system. The following criteria will be taken into account:

Work Programme: the best Work Programme; its focus on the comprehensive development of the field and early production - maximum 80 points; Work Programme - environment: rational use of resources according to the Work Programme - maximum 15 points; Work Programme - financing: level of financing of the Work Programme - maximum 30 points; know-how:experience in exploration and production of hydrocarbons, including...