On 13 August 2025, the Ukrainian Government announced competitive tenders for the conclusion of Production Sharing Agreements (PSAs) concerning two oil and gas blocks in Western Ukraine: the Svychanska and Mezhyhirska blocks. These tenders are conducted in accordance with the Law of Ukraine "On Production Sharing Agreements" and in alignment with the U.S.-Ukraine agreement establishing the Reconstruction Investment Fund — commonly referred to as the Mineral Deal.
Block Locations and Size
- Svychanska Block: located across Drohobych, Stryi, and Sambir districts (Lviv region); Verkhovyna, Kalush, Ivano-Frankivsk, and Nadvirna districts (Ivano-Frankivsk region); and Vyzhnytsia district (Chernivtsi region). Total area: 872.64 km²
- Mezhyhirska Block: spanning Stryi, Sambir, Lviv, Yavoriv, and Sheptytskyi districts (Lviv region); Kalush, Ivano-Frankivsk, Nadvirna, and Kosiv districts (Ivano-Frankivsk region); and Vyzhnytsia district (Chernivtsi region). Total area: 1,515.61 km²
Key Tender Terms
- Agreement Term: 50 years from the date of signing, unless otherwise agreed by the parties
- Participation Fee: UAH 500,000 (approx. EUR 10,000)
Mandatory Work Commitments (Both Blocks)
- Electrometric and gravimetric surveys across the entire block
- 3D seismic surveys: minimum 300 km² (Svychanska) and 400 km² (Mezhyhirska)
- Drilling of at least four wells (two exploration and two stratigraphic)
- Completion of an Environmental Impact Assessment (EIA)
- Submission of the geological exploration report and data transfer to state authorities
- In case of deposit discovery: reserve confirmation and commercial development
Investment Requirements
- Minimum Investment: UAH 1 billion (approx. EUR 20.5 million) during the initial geological exploration phase
- Total Investment: To be determined based on tender results
Financial Terms
- Cost Recovery Production: Up to 55%
- Profit Production Split:
- If recoverable costs exceed the cost recovery cap: 65% Investor / 35% State
- If the cost recovery cap exceeds recoverable costs: 35% Investor / 65% State
Application Deadlines
- Mezhyhirska Block: 19 November 2025
- Svychanska Block: To be determined following official publication of the tender notice
Applications must be submitted by the investor or its authorized representative to the Ministry of Energy, accompanied by a cover letter.
For detailed tender terms and eligibility criteria:
By Yaroslav Petrov, Partner, and Maria Vasyliv, Legal Assistant, Asters
