STATEMENT OF THE U.S.-UKRAINE BUSINESS COUNCIL ON PRODUCTION SHARING AGREEMENTS (PSAs) IN THE UPSTREAM OIL & GAS SECTOR
U.S.-Ukraine Business Council, Washington, D.C.,
The U.S.-Ukraine Business Council (USUBC) has been working for almost two years on ways to expand the opportunities in Ukraine for the domestic and international private business sector to invest in energy production and thus rapidly and significantly expand the overall production of oil a and gas in Ukraine. Investments by the private sector will greatly benefit Ukraine's move for more energy independence and benefit the people of Ukraine.
By far the best way to accomplish this goal is through the implementation of Production Sharing Agreements (PSAs). The government of Ukraine endorsed PSAs in 2018 and has moved forward with a program to have investors bid on oil and gas blocks using the PSA tender legal process, which are long-term contracts that allow private companies to utilize the international legal system if there are any disputes.
The PSA tender program is moving forward in Ukraine. A transparent and competitive program is in place. PSA tender bids are due in May and the awards are expected in June. This is a very exciting and significant achievement by the government of Ukraine, one that is being watched around the world as a strong and serious signal that Ukraine is expanding the energy investment climate and providing real opportunities for the private sector to invest in Ukraine.
The U.S.-Ukraine Business Council (USUBC) is looking forward to the completion of the PSA bidding process, the awarding of contracts to private companies, the increase and diversification of oil and gas production in Ukraine, and energy prosperity.
U.S.-Ukraine Business Council (USUBC)
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