On 23 May 2012 the Cabinet of Ministers of Ukraine (CMU) adopted two Resolutions on Holding Tenders for the Award of Production Sharing Agreements (PSA) for the Extraction of Hydrocarbons within the Foros and Skifska Areas (Resolutions No. 454 and No. 455 respectively, hereinafter the “Resolutions”). The Resolutions became effective on 30 May 2012 and contain the main conditions on which the PSA tenders for the above mentioned areas will be held.
On 2 June 2012 both tender announcements were published in the state newspaper “Uryadovyi Kuryer” (No.98). Tender bids must be submitted within two months from the date of their publication (i.e. on or before 2 August 2012).
The Skifska and Foros areas are oil and gas fields, located on the Black Sea shelf near the Ukrainian-Romanian border and the Crimean Peninsula respectively. The estimated recoverable reserves are expected to be 3 to 4 billion cubic meters of natural gas per year at Skifska and 2 to 3 billion cubic meters at Foros areas. The most important tender conditions are summarized below:
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Law: Resolution No. 454 of the Cabinet of Ministers “On Holding Tenders for the Award of Production Sharing Agreements for Extraction of Hydrocarbons within the Area of Foros” dated 23 May 2012
Resolution No. 455 of the Cabinet of Ministers “On Holding Tenders for the Award of Production Sharing Agreements for Extraction of Hydrocarbons within the Skifska Area” dated 23 May 2012