At its meeting on December 28, the Cabinet of Ministers approved draft agreements on the distribution of products in 7 sections: Sofiyivska, Uhnivska, Balakliyska, Ivanivska, Zinkivska, Buzivska, and Berestyanska.
Tenders for these agreements took place in 2019.
After that, the representatives of the Government and investors carried out significant systematic work to form mechanisms for the implementation of Production Sharing Agreements.
In the absence of practical application of the mechanism of implementation of Production Sharing Agreements in Ukraine, the negotiating teams managed to devise mechanisms for the implementation of oil and gas activities in the subsoil areas, taking into account the long-term perspective.
The aforementioned mechanisms formed the basis of the draft Production Sharing Agreements, which were approved by the Cabinet of Ministers.
Production sharing agreements are a systemic tool for shaping state policy in the implementation of projects with investments in subsoil development and infrastructure building.