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KYIV -- Oil Gas Systems, LLC - a subsidiary of DTEK Oil & Gas - has purchased the special permit for subsurface exploration of the Svitankovo-Lohivskyi license site in eastern Ukraine for UAH 85 million ($3.17 million) at open auction. Organized by the State Geological Service of Ukraine, the auction was the first one conducted online through the ProZorro.Sale system.

The special permit covers geological exploration and subsequent hydrocarbon production at the Svitankovo-Lohivskyi license site over a 20-year period. The site is 197.5 km2 across the Chuhuivskyi, Zmiyevskyi and Kharkivskyi districts in Kharkivska region and is expected to contain oil, natural gas and gas condensate.

Igor Schurov, DTEK Oil&Gas CEO: “The launch of public online auctions marks an important step in ongoing reforms in the Ukrainian oil and gas industry. Securing this permit is a logical step in the expansion of DTEK Oil & Gas’ efforts in Kharkivska region. We have plans to invest over UAH 300 million ($10 million) into geological exploration, exploratory drilling and surface infrastructure. Any production from the site will increase our contribution to the energy independence of Ukraine.”