Ukraine sells three gas production licenses for UAH 141 mln

The State Geological Service of Ukraine conducted
three auctions for licenses to extract oil and natural gas at a total starting
price of UAH 44.9 mln, reaching a total final sale price of UAH 141.1 mln,
media reported on March 6. One license was sold to a company related to DTEK
for UAH 85.0 mln, the second was sold to state-controlled Ukrgazvydobuvannia
(Naftogaz subsidiary) for UAH 31.0 mln, and the third license was purchased by
a company controlled by Burisma Holding for UAH 25.1 mln.

Alexander Paraschiy: This was the first transparent tender for the sale of oil and gas
licenses in Ukraine. If such tenders become a regular occurrence, they will
benefit the nation’s investment climate and energy independence, enabling
private and state producers to better plan their expansion and investment in
new license development. State budget revenue also stands to benefit.