Page 7 - FSUOGM Week 05 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Ukraine invites gas

import bids

UKRAINE'S state-owned Naftogaz has invited of the licences were secured by Naftogaz, while
UKRAINE gas import bids from Europe over the next two few hoped-for international firms took part in
years, the company announced on January 29. the tenders.
Naftogaz will use EBRD Ukraine relies on imports from Hungary, Ukraine has started this year well, however,
funds to pay for the Poland and Slovakia to supplement its domes- finally signing off earlier in January on a handful
imports. tic production, with shipments from the three of production-sharing agreements (PSAs) with
countries reaching nearly 16bn cubic metres last local players. Finalising the contracts was meant
year. It ceased direct purchases from Russia over to take place much sooner, but the coronavirus
five years ago for political reasons. (COVID-19) crisis and the resulting slump in
Naftogaz is inviting offers for the supply of gas prices disrupted the process.
gas between February 15, 2021 and December PSAs were signed with Naftogaz’s produc-
31, 2022. Interested suppliers must file their tion arm Ukrgazvydobuvannya (UGV) for
offers by February 11. The company will use four blocks, named Buzivska, Balakliyska, Ber-
€80.4mn ($97mn) in funds from the European estyanska and Ivanivska. All other PSAs were
Bank for Reconstruction and Development reached with local private players. DTEK Oil &
(EBRD), raised in a 2019 Eurobond sale, to pay Gas obtained rights to the Zinkivska blocks, Geo
for the gas. Alliance the Sofiyivska area and Zakhidnadras-
Ukraine’s aspiration is to overcome its ervis the Uhnivksa site.
dependency on imports by boosting domestic Canada’s Vermillion Energy had won two
supply. But so far it has fallen significantly short PSAs in partnership with UGV, and was hailed as
of the output targets set by the government. one of the few international players to participate
To attract more investment in gas develop- in the contest. But it pulled out before the awards
ment, Ukraine awarded dozens of licences in were finalised, after reining in its development
recent years. But progress was slow and many plans in response to the oil price collapse. ™

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