The exact list of subsoil areas (mineral resources deposits), which may be available for development in terms of production sharing agreements is determined by the Resolution of the Cabinet of Ministers of Ukraine 308 dd. March 15, 2006. Additional parts of subsoil areas (mineral resources deposits) may be introduced to this list and the respective project could be performed under PDA.

It was also announced that the tender on choosing the investor for signing of the PDAs for two areas (Lviv region and between Kharkiv and Donetsk region) should be held in summer 2011.

How foreign investors can obtain the oil & gas licence in Ukraine? Practical steps.

According to the amendments introduced into the Law of Ukraine “On Licensing of Certain Types of Economic Activity” No 1775-III dd. 01.06.2000 in October 2010 such activity types as the “development of mineral deposits being of national importance and included to the State Fund of mineral deposits” as well as “mineral exploration” no longer require obtaining a license.

Still the obtaining of special permit for use of oil-and-gas subsurface resources is required in the order stipulated by the Resolution of the CM of Ukraine No 1475 dd. 17.09.2003.

Such permits are granted based on auction. Firstly the announcement in special press (Uryadovy Kuryer) shall be made by the state authority with determination of the area. During the time stipulated for submission of documents, all candidates shall submit their offers and pay monetary contribution (for tender documentation, geological information and for participation in tender). After the deadline for submission of offers, the winner is determined within 1 month.

Ukrainian Energy

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