Another article on the Ukraine proposition, translated via Google. this news was published on the 7th March but gives more details. If FRR can secure this acreage on a 50-yr term, then the Black Sea strategy starts to take significant shape, both operationally and politically. Very interesting.
Kiev, March 7 - IA Neftegaz.RU. Frontera Resources returns to the topic of hydrocarbon production in Ukraine.
Of interest to the company is the Dolphin site, located in the northwestern part of the Black Sea’s continental shelf.
At the suggestion of Frontera Resources, Ukraine may hold a tender for the conclusion of a production sharing agreement (PSA) for the Dolphin subsoil plot.
The corresponding draft resolution was discussed at a meeting of the Cabinet of Ministers of Ukraine on March 6, 2019.
The head of the Ministry of Energy and Coal of Ukraine I. Nasalik made a report on the competition for the conclusion of the PSA for the Dolphin section.
The total area of the Dolphin site is 9,772 thousand km2.
The terms of the competition stipulate that the minimum investment should amount to 1.5 billion UAH.
The amount of total investment required to ensure industrial development will be determined by the results of the competition.
The state’s share in profitable products should be at least 11% of its total volume, the maximum investor’s share - 70% of total production.
The winner of the competition for the development of a PSA site will have to provide a geological study of the subsurface site.
In particular, during the first 5-year stage of exploration (GEW), at least 5 wells should be drilled in the area. The term of the PSA is 50 years.
Frontera Resources Corporation has long been interested in Ukraine. The company was founded in 1996 with an eye to the exploration and production of oil and gas in the countries of Eastern Europe and Asia belonging to the Black Sea basin.
First of all, the company is interested in the countries of the post-Soviet space, the most successful for Frontera Resources was the exit to Georgia, where the company has proven natural gas reserves of 300 billion m3.
In Moldova, companies are much less fortunate, and in Ukraine, the company has been trying to realize their interests for several years.
In March 2012, Frontera Resources signed a memorandum of understanding with Gosgeonedr of Ukraine, according to which the company intended to engage in exploration and production of hydrocarbons in the country.
In July 2015, Naftogaz and Frontera Resources entered into an agreement in the field of investment in the exploration and development of oil and gas fields in Ukraine.
A project to import liquefied natural gas (LNG) from the capacities of Frontera Resources in Georgia was also planned for implementation, and it was planned to begin deliveries of LNG to Ukraine as early as 2017-2018.
It was not possible to implement the project due to the modest volumes of gas production in Georgia, and because of the scandal around the regasification LNG terminal near Odessa.
In 2017, the interest of Frontera Resources shifted towards shelf projects in Ukraine.
So, with the Ministry of Energy and Coal Industry of Ukraine, the company discussed a project for the search and production of hydrocarbons in the subsoil area in the western part of the Black Sea shelf under PSA terms.
But Then the Interdepartmental Commission on the organization of the conclusion and implementation of the PSA recommended the company to work out the possibility of filing a joint appeal with Chernomorneftegaz, which has special permits for the use of subsoil in the Odesskaya and Bezymyannoe areas.