Subsoil Use Rights in Ukraine: Exploration & Production Licenses, Production Sharing Agreements and Production Enhancement Contracts

by Iaroslav Cheker, Dmytro Melnik, Alina Kriuchkova.

Abstract

(Addendum 10/05/2022) This article provides a detailed description and analysis of existing oil & gas subsoil use mechanisms in Ukraine. Comprehensive characteristic of exploration & production licenses, production sharing agreements and production enhancement contracts with procedures and terms of their receipt/signing (including for investors with foreign capital) is provided, its features, pros and cons are highlighted. In addition, the main legislative initiatives to improve the existing mechanisms of subsoil use designed to solve a significant part of highlighted industry issues are analysed and summarised.

Additionally, the article provides a general description of Ukraine's oil and gas industry. Inter alia, production over the past few years based on the reserves statistics, key market players (both with Ukrainian and foreign capital) and technical capabilities of the industry: the gas transmission and oil pipeline systems, capacity of underground gas storage facilities in mainland Ukraine. Special attention is paid to historical aspects of Big Oil activities in Ukraine.

Read Subsoil Use Rights in Ukraine: Exploration & Production Licenses, Production Sharing Agreements and Production Enhancement Contracts here https://www.ogel.org/article.asp?key=4036 (sign to download).