Page 53 - UKRRptAug19

US oil has yet to become a common feedstock for European buyers, who complain about volumes and varying quality, but recent market changes have shown American barrels can be a reliable alternative, traders said.
Ukraine expands customs duties on liquefied gas imports from Russia
The Cabinet of Ministers decided at its July 24 meeting to expand its customs duties on liquefied gas imports from Russia to include all types, Andriy Geurs, the president’s representative to the Cabinet of Ministers, reported on his Facebook page on July 30. The original resolution on July 17 applied duties to only 1.7% of liquefied gas imports, one industry consultant alleged. The special customs duties on imports of liquefied gas and pipeline-supplied diesel fuel from Russia were applied on July 17 in response to the Russian government’s April 18 decision to limit exports of oil and oil-based products to Ukraine. The customs duties will affect traders, not the retail market, and bring an additional UAH 2 bln in budget revenue annually, Gerus said on July 17.
The Ukrainian government awarded nine product sharing agreements (PSA) for the exploration of nine potential oil and gas fields, the Energy Ministry reported on July 1. The ministry received 23 bids from 14 companies, of which seven companies/partners were selected, including Ukrainian, US and Canadian companies.
Of the nine fields, two were awarded to state-controlled UkrGasVydobuvannya , Ukraine’s biggest gas producer, which is a 100%-owned subsidiary of the nation's state-owned gas monopoly Naftogaz. In 2018 the company produced 15.496 bcm of gas, which accounts for 73.8% of total gas production in Ukraine. This includes gas produced through joint venture agreements and gas used for the company’s operating needs.
Two were awarded to UkrGasVydobuvannya in partnership with Canadian Vermilion Energy (VET CN); one was awarded to US-based Aspect Energy; and the rest to local private companies: DTEK Oil & Gas (Ukraine's oligarch Rinat Akhmetov), GeoAlliance (oligarch Victor Pinchuk), Ukrnaftoburinnia (oligarch Ihor Kolomoisky), and Zakhidnadraservis (Zinovy Kozytsky).
The winners have committed to invest over $450mn into the exploration of fields and drilling of at least 39 exploration wells in the next five years. The state’s share at the profit-production stage will reach 12%-35%, depending on the field, according to Kyiv-based brokerage Concorde Capital.
The Ukrainian government has announced the result of tenders held for product sharing agreements (PSA) aimed at the exploration of nine potential oil and gas fields , the Energy Ministry reported on July 1. The ministry received 23 bids from 14 companies, of, which seven companies/partners were selected, including Ukrainian, US and Canadian companies.
Of the nine fields, two were awarded to state-controlled UGV, Ukraine’s biggest gas producer; two were awarded to UGV in partnership with Canadian Vermilion Energy (VET CN); one was awarded to US-based Aspect Energy; and the rest to local private companies: DTEK Oil & Gas (Rinat Akhmetov), GeoAlliance (Victor Pinchuk), Ukrnaftoburinnia (Ihor Kolomoisky), and Zakhidnadraservis (Zinovy Kozytsky). The winners have committed to invest over $450mn into the exploration of fields and drilling of at least 39 exploration wells in the next five years. The state’s share at the profit-production stage will reach 12%-35%, depending on the field.
This was the first transparent tender for PSAs, which clearly adds to Ukraine’s
53 UKRAINE Country Report August 2019 www.intellinews.com