DTEK Oil&Gas won the first open auction for subsurface

Oil and gas12 March 2019

On 6 March 2019, Oil Gas Systems, LLC, which is a part of DTEK Oil&Gas, won the auction for special permit purchase for subsoil use of Svitankovo-Lohivskyi license site in Kharkivska region. The auction was organized by the State Geological Service of Ukraine and was the first auction conducted online through ProZorro.Sale system. The company purchased the special permit for UAH 85 mln (USD 3.17 mln), that is by 384% more than the starting price and is an all-time record for Ukraine.

DTEK Oil&Gas won the first open auction for subsurface

Svitankovo-Lohivskyi license site is located in Chuhuivskyi, Zmiyevskyi and Kharkivskyi districts of Kharkiv region. The license site area is 197.5 sq km. It is expected to contain oil, natural gas and gas condensate. The special permit will be issued for geological exploration with the subsequent hydrocarbons production and extends over 20 years.

Igor Schurov, DTEK Oil&Gas CEO: “Launch of public online auctions is an important result of long-term reforms in oil and gas industry. Due to the transparent process and fair competition, we managed to purchase the special permit for the license site that we carefully studied together with the scientific institutions over the last 3-4 years. This step is logical in the development of our business in Kharkivska region. In the nest years, we plan to invest over UAH 300 mln (USD 10 mln) into geological exploration, exploratory drilling and surface infrastructure. In case of the field discovery, additional investments in the development and production will amount to around UAH 1 bln (USD 35 mln), that will allow us to increase our contribution to energy independence of Ukraine”.