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Trident Acquisitions is set to invest $200 million in the site, which is 3.5 times more than the minimum price stipulated by the competition.
The interdepartmental commission under the Ministry of Energy and Coal Industry of Ukraine has selected the U.S.-based Trident Acquisitions winner of the competition for hydrocarbons development on the Black Sea shelf within the Delfin section.
The commission headed by Minister Ihor Nasalyk passed the corresponding decision by a majority of votes today, July 26.
Nasalyk says Trident Acquisitions has offered to invest $200 million in the Delfin site over the first 5 years, which is 3.5 times the minimum price stipulated by the competition, and also to drill at least seven exploratory wells throughout the said period.
"The total investment in the project is $1 billion, which is the largest sum, and Trident, among all four companies, has offered the best conditions for product distribution in favor of the state. That is, on basic things like distribution and investment, the company simply has no equals," Nasalyk stressed.
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According to the commission, the other three participants have weaker or irrelevant offers compared to that of Trident. Caspian Drilling International Ltd sent the ministry a letter with a request to withdraw the application. Ukrnaftoburinnia is currently working only at a single field and has no experience in the explored areas. The U.S.-based Frontera Resources, which had also filed an application, is noted by the commission as having exploration experience, particularly in Georgia, while having no experience on the shelf and being in a difficult financial position.
Thus, Trident Acquisitions was recognized as the best contender for the development of the hydrocarbon site in the Black Sea.
As UNIAN reported earlier, in April, the State Service of Geology and Subsoil of Ukraine announced a competition for the Delfin hydrocarbon section, located in the northwestern part of the Black Sea continental shelf, which can attract at least UAH 1.5 billion in investments in the exploration and extraction of oil and gas in Ukraine. The site is almost 10,000 square kilometers, while the term of the agreement is 50 years with the right of extension.
According to the conditions, the share of the state in profitable products should be at least 11% of the total volume, while the ceiling for the investor's share shall be 70% of the total output.