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The State Service of Geology and Subsoil of Ukraine held an open electronic auction for the sale of a special permit for the development of the Budyschansko-Chutivska site.
The State Service of Geology and Subsoil of Ukraine has completed an open auction for the sale of a special permit for the development of Budyschansko-Chutivska Square for 20 years. The lot was the most anticipated offer on the market and provoked fierce bidding between the five participants. The leaders of the race in the first round were public joint stock company “UkrGasVydobuvannya”, LLC Regal Petroleum Corporation (Ukraine) Limited and LLC "NAFTOGAZGEOROZVIDKA" (Oil and Gas Geoexploring LLC) (DTEK Group of Companies). As a result of the competition, the final cost of the license increased eight times compared to the initial one and amounted to UAH 650,500,000. The winner was the LLC "NAFTOGAZGEOROZVIDKA" (Oil and Gas Geoexploring).
"The open race of major market players has demonstrated once again that businesses are ready to compete honestly for the right to develop the Ukrainian subsoil and invest in the mining industry. The final cost of the lot exceeded our forecasts, and this is a positive signal that confidence in the industry is being restored, - commented the head of the State Service of Geology and Subsoil Roman Opimakh. "Budyschansko-Chutivska Square has become a real sensation on the Ukrainian oil and gas market, and as a result of the auction, the State Budget of Ukraine will receive more than half a billion UAH".
According to the procedure, the winning company has to pay the cost of a special permit within 60 working days, the money will go directly to the State Budget of Ukraine.
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