Ukraine sells Stryi-area gas field license for ₴110 million, sending proceeds to U.S.–Ukraine fund

The State Service of Geology and Subsoil of Ukraine has sold a special permit for the development of the Lyubynetska oil and gas field in Lviv region on the sixth attempt, according to the Prozorro.Sale website.

The site is located in the Stryi and Drohobych districts, 15 kilometers southwest of Stryi.

The permit grants the right to develop subsoil deposits from a depth of 4,000 meters, excluding the section that overlaps with the Dovgolutska area at depths between 4,700 and 5,800 meters.

Three bidders took part in the auction, which was held on the Prozorro.Sale electronic platform. The starting price was UAH 48.3 million, but competition raised the final bid to UAH 110 million, offered by the winner, Gaz-MDS LLC.

According to the LIGA360 system, the company is owned by Oleksandr Guzenko and his daughter Tetyana Guzenko, who rank among the largest private gas producers in Ukraine.

The State Geological Service reported that the proceeds from the sale will go to the state budget and contribute to the U.S.–Ukraine Reconstruction Investment Fund, in line with Ukraine’s international commitments.

The special permit is valid for 20 years and includes three stages: geological exploration of oil and gas subsoil, pilot commercial development of fields, and full-scale commercial production. The site contains deposits of natural gas, oil, dissolved gas and condensate.

According to Oleh Hotsynets, Head of the State Service of Geology and Mineral Resources of Ukraine, attracting private capital to develop deep oil and gas fields in Lviv region is a strategic step toward strengthening the country’s energy sustainability and independence.

• In October, it became known that British company Pennpetro Energy plans to acquire an oil and gas license in Ukraine for the development of the Limnytska area.