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To achieve energy independence and attract investors in the oil and gas sector, the State Service of Geology and Mineral Resources of Ukraine (Gosgeonedr) on Dec. 27 will auction two special authorizations for development of promising oil and gas fields - Popasniansky (Luhansk region, gas of central basin type) and Bilichevsky (Poltava region, oil, gas and condensate), the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
The agency established the starting price for Popasniansky area at 17,911 million UAH (performance security - 3,582 million UAH, cost of geological information - 0.608 million UAH), and for Bilichevsky area - 2.515 million UAH (performance security - 0.503 million UAH, cost of geological information - 0,39 million UAH).
Experts say that the maximum efficiency and transparency of auctions will be ensured by recent changes in the national legislation initiated by the government. To ensure efficient operation of companies in the oil and gas industry, the Cabinet greatly simplified the mechanism for obtaining subsoil licenses. Due to the recent changes, the list of documents to be submitted was minimized for activities related to oil and gas production and transportation.
According to government experts, the change was needed, because since 1994, when the first version of the Code of Ukraine "On subsoil" was approved, this part of the national economy had developed erratically, and the subject legislation evolved without any system or vision.