OREANDA-NEWS. August 17, 2012. The Intergovernmental Commission has determined a winner of tender on extraction of hydrocarbons within the Scythian site (Black Sea shelf) by the CMU Resolution № 455 dated 23.05.2012 "On tender carrying out regarding a deal on the distribution of hydrocarbons which will be extracted within Scythian site."

It became the company Exxon Mobil Exploration and Production Ukraine BV. This was reported by Eduard Stavytskyi, Minister of Ecology and Natural Resources of Ukraine during a briefing at the Government House.

He recalled the tender applications were passed by the State Service of Geology and Mineral Resources of Ukraine on August 3, 2012 to the Cabinet. He also said that two applications were received from companies Lukoil Overseas Ukraine BV and Exxon Mobil Exploration and Production Ukraine BV. The second application is a common and includes proposals from companies ExxonMobil, Shell, Petron (a subsidiary company of OMV) and the Nadra Ukraiyny NJSC.

Eduard Stavytskyi pointed out that the Exxon Mobil Company has won the tender because one was able to offer more favorable terms.

"The winners offered for search works of more than 2 times more than in terms of tender on geological exploration throughout the territory. After signing production-sharing agreement, which will take place this year, the state budget receives \\$ 325 million that more than was proposed by the Cabinet. The winners also offered a larger share of state in profitable production. The minimum share was 20%, 25% were offered to," Eduard Stavytskyi underlined.
The Minister also reported that each of the companies to participate in the tender purchased bidding documents for Scythian site for 12 million UAH, as well as have paid for participation in tender of 1 million UAH each.

Finally, the environmental department head noted that while implementing all the projects which state currently offers for escalating hydrocarbon production, Ukraine be able to reach by 2020 of an extraction of approximately 45 billion cubic meters of gas that together with energy efficient technologies using would enable the country to provide itself with hydrocarbons completely.
"The increase in own domestic production and participation of the state in percentage distribution of products will provide an opportunity to adjust domestic prices. I'm confident we will achieve this goal," Eduard Stavytskyi summed up.