Naftogaz Group invites potential partners for cooperation in PEC project
Naftogaz Group was announced about re-launch of PEC (Production Contract) project and informs that the pre-qualification procedure for the interested participants has started.
The project will consist of two stages as before: pre-qualification and bidding among the qualified participants. However, the pre-qualification criteria, the number of field clusters and the project implementation deadlines have changed under the new approach. Project’s teaser and pre-qualification criteria are available at the bottom of this text.
In order to be admitted to the bidding process, as part of the pre-qualification procedure, the participants shall send the package of the official documents confirming the compliance of the participant with the pre-qualification criteria by 10 am June 1, 2019 to the e-mail address firstname.lastname@example.org.
The purpose of the PEC project is to engage an experienced operator to increase production and reduce operating costs at our fields, that still have significant potential, but compared with other assets in our portfolio, have lower priority in terms of resource allocation, through introduction of modern technologies and attraction of own investments. This would allow UGV to direct its own human resources and capital to other important projects»- noted Andrey Favorov, Director of Integrated Gas division.
UGV is open to cooperation with experienced upstream partners and to new technological partnerships and methods of gas production. We have carefully studied the feedback of the market and modified the format of our proposals accordingly to make them attractive for the market players. Let me invite both Ukrainian and International players to evaluate our proposal carefully and to participate in the competition»: added the Director of the division.
Information about project
UGV has invited oil & gas companies to cooperate and give their feedback on participation in gas production enhancement project.
The Company offered cooperation to those oil & gas companies which have modern technologies in production enhancement through conclusion of production enhancement contract (PEC) on production stimulation in gas field group.
Since such type of contract has never been concluded in Ukraine before, UGV is a pioneer, just as in a number of other areas of gas production market development. One or several contracts were expected to be concluded for a period of 10 (15) years with the possibility of prolongation for another 10 years.
The existing UGV gas fields were assessed according to the main indicators (current gas production volume, proven reserves, depths, IRR drilling, production/reserves ratio, liquid hydrocarbon reserves, etc.) and categorized by statistical methods into more or less homogeneous clusters, among which the ones most applicable for this particular form of cooperation for both Ukrgasvydobuvannya and the market have been selected.
Following the selection results, it is planned to conclude one or several PECs in gas field groups (clusters), with the development of the relevant surface facilities and preservation of Ukrgasvydobuvannya’s absolute ownership of assets, products and licenses.
The potential UGV partner or partners is expected to implement a significant investment program and perform hydrocarbon production enhancement operations on the mutually beneficial conditions.
PEC partnership project overview
PEC Pre-Qualification Criteria 2019
Ten Key Legal Aspects of Production Enhancement Contracts