On March 6, 2019, the first in the history of Ukraine transparent electronic auctions for the right to extract oil and gas were held. At the auction were put up 10 lots totalling 615 million UAH. The State Service of Geology and Subsoil of Ukraine put up the lots for auction in the Prozorro.Sales system through the electronic platform of the Ukrainian Energy Exchange.

Trades were successfully held in the Pivdenno-Kobzivsky (Kharkiv region), Dubrivsko-Radchenkovsky (Poltava region) and Svitankovo-Logivsky (Kharkiv region) fields. During the auction, the sale price for the mining right was increased significantly in relation to the original. In Pivdenno-Kobzivsky, the price tripled, but a particularly fierce struggle unfolded during the bidding on Svitankovo-Logivsky square. 4 participants fought for the victory at once, while the price for the right to mine increased from almost 18 million UAH up to 85 million UAH, that is, almost 5 times. The winner was TOV "Naftogazsistemy".

"This is a huge step for the development of the industry as a whole and a significant chance for the energy independence of our country. Already now we can say that sold permits for using subsoil at electronic auctions have found their effective owners who are really interested in running the mining business. Open and transparent auctions sure to attract investments to the industry and this is very important", said Oleksandr Kovalenko, CEO of the electronic platform of the CE "Ukrainian Energy Exchange".

This trading took place in a fundamentally new format for the Ukrainian subsoil use system, notes Acting Head of The State Service of Geology and Subsoil Oleh Kyryliuk. "Today we have taken an important step towards the complete transfer of auctions for the sale of subsoil in online mode. Fields with an area of 630 sq. km, with a resource base of over 2 million tons of oil, over 2 billion cubic meters of gas and 50 thousand tons/km2 conventional units of hydrocarbons were sold. Online auctions have proven their effectiveness and once again convinced us that they are the most transparent way to manage subsoil. I hope that the pilot project in Ukraine will finally prove its effectiveness in subsequent auctions and will work on an ongoing basis ", commented Oleh Kyryliuk, initiator of the project of electronic auctions of oil and gas, Acting Head of The State Service of Geology and Subsoil.

"On Wednesday, a long-awaited event for domestic gas production took place - for the first time, special permits for the use of subsoil were sold online via the ProZorro.Sales platform. Electronic trading took place in three areas - it was a bitter struggle between investors, as a result of which the state budget replenished more than 140 million UAH. This was an absolute record for the oil and gas industry - special permits were sold for the highest prices in the history of Ukraine. For example, the price of one field in Kharkiv region - Svitankovo-Logivsky - grew almost 5 times compared to the start. The very fact of conducting electronic trades is extremely important for the state and the industry. For the first time it happens openly and transparently, with equal access to the auction for everyone and the opportunity to watch online process from anywhere in the world" - said Roman Opimakh, executive director of the Association of Gas Producers of Ukraine.