On 19 December 2019 the Parliament adopted Draft Law No. 2240 which, among other matters, introduces significant amendments to simplify the procedure for entering into Production Sharing Agreements (PSAs). Specifically, the Draft Law cancels the requirements to:
- carry out environmental impact assessments (EIAs) of PSA drafts. From now on, PSA investors are only required to carry out EIAs of actual works under a PSA (for example, drilling of wells, construction of infrastructure facilities, etc.) after the PSA is signed; and
- obtain local councils' approvals of PSA drafts.
The Draft Law will become effective once it is signed by the President and published in the official media.
These latest changes are part of a major effort by the Ukrainian Government to attract foreign investors to develop Ukrainian oil and gas projects.
We expect the Government to announce new PSA tenders, including for offshore areas, shortly.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.