DTEK Oil&Gas wins a competitive auction for oil and gas area
Oil&Gas Geoexploring LLC (part of the DTEK Oil&Gas group), on August 31, 2020, won the auction hosted by the Ukraine’s State Service of Geology and Subsoil for the purchase of a special permit to use the subsoil of the Budushchansko-Chutovska area (Poltava region). The company acquired a special permit for UAH 650.5 mln with a starting license cost of UAH 81.5 mln. The auction was held online in the Prozorro.Sale system.
The Budushchansko-Chutovska area is located on the territory of the Chutovskiy and Poltava districts of the Poltava region. It includes several fields with a proven reserve base of oil and natural gas. This area requires a detailed geological study in order to confirm its prospects and access to subsequent industrial development.
Igor Shchurov, CEO of DTEK Oil&Gas: “Such transparent competitive auctions are one of the most effective tools for attracting investments in the gas production industry of Ukraine. The experience of our company is an example of how system investments, effective management and modern innovative technologies can bring results. In recent years, we have increased production by more than threefold. Thanks to open and competitive auctions, we plan to further invest and develop the Ukrainian gas industry".
DTEK Oil&Gas has expertise in deep drilling and the development of complex fields, and attracts modern technologies and international service providers to the Ukrainian market. This allows the company to be as efficient as possible even during the crisis in the oil and gas sector.
Successful development of fields in this area will increase DTEK's contribution to the energy independence of Ukraine, open up opportunities for creating new jobs in the region and increase tax revenues to the state budget.