The state budget will receive almost UAH 395 million for two hydrocarbon lots

On October 20, during electronic auctions, which were held by the Ukrainian Geological Survey, two special permits for development of hydrocarbons worth about UAH 395 million were sold. The a plot of land are located in Romny district of Sumy Region and Mirgorod and Poltava districts of Poltava Region.

The highest amount, UAH 304 million, was offered for the Pivdenno Rusanivska area by JSC Ukrgazvydobuvannya, which participated in the e-trades through the platform of Ukrainian Energy Exchange LLC.

Zhukovska area`s price started of UAH 5,3 million. During the competitive and transparent trades its selling price increased 17 times - up to 90 million. 4 participants competed for the right to receive a permit for subsoil use. Horizons LLC won by offering the highest price.

Companies that have purchased licenses will pay taxes and rent for the use of mineral resources.

"The government has set an ambitious goal: to get rid of energy dependence by 2030 through import substitution. Over the past year and a half the Service has done a tremendous job in the direction of increasing its own production - gave the start to large-scale hydrocarbon projects on an area of 50,000 square kilometers both offshore and onshore. Also, it has prepared 50 oil and gas objects for the Investment Atlas for submission to electronic trades,"- said the chairman of Ukrainian Geological Survey Roman Opimah.

"We are always working to improve our own service for organizing electronic auctions and attracting participants. It is very pleasant to realize that through such joint efforts we, together with the Ukrainian Geological Survey, manage to increase revenues to the budgets of various levels. Despite the good results at the aforementioned auctions, we are sure that our greatest common victories are yet to come," Oleksii Dubovskyi Chairman of the Exchange Committee of the Ukrainian Energy Exchange LLC commented the auction results.

Thanks to open and transparent auctions, in 2020 the average selling price of lots put up by the Ukrainian Geological Survey increased by 7 times. By March 2019, there were almost no auctions, mostly there ware lots drawing with artificially limited competition, most of the special permits were granted by approbation.

Lets recall, the Ukrainian Geological Survey created the Subsoil User Investment Atlas. The service is constantly updated and keep current. Now it contains more than 500 objects for investment: subsoil areas with deposits of metallic and non-metallic minerals, groundwater, semi-precious stones, combustible minerals.