London: DTEK Oil & Gas has won a competition to develop Zinkivska Block as part of Ukraine’s largest Product Sharing Agreement (PSA) in history. As part of the agreement, $37 million will be invested by the company to start exploration and production within 2 years. DTEK will analyse the data gathered through 3D wide-azimuth seismic studies and dynamic gas studies as well as from the three oil wells it hopes to utilise.
The PSA, which included bidding for nine gas and oil blocks with a total area of 11,400 km2,garnered huge interest, receiving more than 20 proposals from 14 oil and gas firms.
“During five years DTEK Oil & Gas invested over $400 million into Ukrainian gas production, that is a large contribution to the industry development. Conducting such a large PSA competition is a next important step to improve investment climate of Ukraine, since cooperation in PSA format will open new opportunities to increase investments, grow production and strengthen energy independence of our country.”, said Igor Schurovsa, the CEO of DTEK Oil and Gas.