DTEK Oil&Gas signed PSA for the Zinkivska block

Oil and gas31 December 2020

The DTEK Oil&Gas Group companies signed a production sharing agreement (PSA) for the Zinkivska block as part of the largest PSA tender in Ukraine's history. DTEK Oil&Gas intends to reprocess and reinterpret data from earlier seismic and well logging surveys, conduct a 3D seismic study and drill three exploratory wells in the next few years. The company is going to invest over UAH 1 billion in the exploration and development of this block.

DTEK Oil&Gas signed PSA for the Zinkivska block

"The year 2020 was a difficult one for the gas production sector not only in Ukraine, but also around the globe because of the pandemic and a record drop in gas prices. That is why signing a PSA at the end of the year is a strong positive signal for the industry, which will considerably boost Ukraine's investment image. An efficient implementation of the agreement for the Zinkivska block is an integral component of the DTEK Oil&Gas 2030 strategy and, unquestionably, the most important step towards ramping up gas production in the country and strengthening Ukraine's energy independence," said Igor Shchurov, CEO of DTEK Oil&Gas.

It is worth reminding that at the meeting on Monday, December 28, the Cabinet of Ministers of Ukraine approved the text of seven production sharing agreements (PSA) for hydrocarbon production in Ukraine. The State Service of Geology and Subsoil of Ukraine was authorised to organise and run the PSA implementation process.

As we informed earlier, the total amount of investments to be made by all successful tenderers under the PSAs will range from USD 430 mln to USD 1 bln.