Ukraine launches PSA tenders for two oil and gas blocks in the west

The Ministry of Energy has announced a tender for the conclusion of production sharing agreements (PSAs) for the exploration and production of hydrocarbons within the Mezhyhiria and Svichanska subsoil areas in western Ukraine (Lviv, Ivano-Frankivsk, and Chernivtsi regions), according to the State Service of Geology and Mineral Resources.

The tender aims to attract potential investors to carry out hydrocarbon exploration and production at their own expense under a 50-year PSA.

The winner will be required to conduct electrical prospecting and gravimetric surveys across the entire area, carry out 3D seismic surveys (400 sq. km for Mezhyhiria, 300 sq. km for Svichanska), drill at least two exploration wells and at least two wells to study the deep geological structure within five years.

The minimum investment, as determined by the tender results, must be no less than UAH 1 billion for each subsoil area.

All extracted hydrocarbons remain state property until distribution.

The investor may recover a portion of production to cover exploration and development costs, but not more than 55% of total output.

The remaining production, after cost recovery, will be split as follows:

→ 35% to the state and 65% to the investor if recoverable costs exceed 55% of production;
→ 65% to the state and 35% to the investor if recoverable costs are below 55%.

The total resource base is estimated at approximately 21.9 million tons of oil equivalent (toe) for Mezhyhiria and 33 million tons for Svichanska.

The deadline for applications is December 4, 2025.

• On September 1, the Cabinet of Ministers also approved the terms of a tender for solid minerals for Dobra lithium deposit in Kirovohrad region.