Legal status of the Interdepartmental Commission for the organization of the conclusion and implementation of production sharing agreements

Article 5 of the Law of Ukraine "On Production Sharing Agreements" No. 1039-XIV dated September 14, 1999 provides that the parties to a production sharing agreement are the investor(s) and the state represented by the Cabinet of Ministers of Ukraine.

To resolve issues related to the organization of the conclusion and implementation of production sharing agreements, the Cabinet of Ministers of Ukraine shall establish a permanent Іnterdepartmental Сommission (hereinafter referred to as the Interdepartmental Commission) consisting of representatives of state bodies, local self-government bodies, and deputies of Ukraine.

Informational, organizational, material and other support for the activities of the Interdepartmental Commission is provided by the central executive body (hereinafter referred to as the working body of the Interdepartmental Commission), determined by the Cabinet of Ministers of Ukraine.

The Regulation on the Interdepartmental Commission is approved by the Cabinet of Ministers of Ukraine.

Deputies of Ukraine are included in the Interdepartmental Commission for the period of their performance of their deputy powers (with their consent) and are excluded from its composition (with their consent) by the Chairman of the Interdepartmental Commission.

The number of the deputies of Ukraine included in the Interdepartmental Commission cannot exceed one third of its composition.

The Interdepartmental Commission for the Organization of the Conclusion and Implementation of Production Sharing Agreements is a permanent body established to resolve issues of organizing the conclusion and implementation of production sharing agreements in accordance with the Resolution of the Cabinet of Ministers of Ukraine No. 644 of 01.08.2013 (hereinafter referred to as the Regulations).

The composition of the commission today:

1) Minister of Economy, Environment and Agriculture, Co-Chairman of the Interdepartmental Commission on Mineral Areas, Except for Oil and Gas Subsoil Areas;

2) Minister of Energy, Co-Chairman of the Interdepartmental Commission on Oil and Gas Subsoil Areas;

3) State Secretary of the Cabinet of Ministers of Ukraine, Deputy Co-Chairman of the Interdepartmental Commission on Mineral Areas, Except for Oil and Gas Subsoil Areas;

4) First Deputy Minister of Energy, Deputy Co-Chairman of the Interdepartmental Commission on Oil and Gas Subsoil Areas;

5) Representative of the Secretariat of the Cabinet of Ministers of Ukraine, Secretary of the Interdepartmental Commission on Mineral Areas, Except for Oil and Gas Subsoil Areas;

6) First Deputy Minister of Economy, Environment and Agriculture;

7) First Deputy Minister of Finance of Ukraine;

8) First Deputy Minister of Justice of Ukraine;

9) First Deputy Head of the State Tax Service;

10) Head (Deputy Head) of the State Service of Geology and Subsoil of Ukraine;

11) Head (Deputy Head) of the State Labor Service;

12) Head of a structural unit of the Apparatus of the National Security and Defense Council of Ukraine (upon consent).

Representatives of local self-government bodies on whose territory a subsoil area is located, which is transferred for use under the terms of a production sharing agreement (with consent).

The role and activities of the Interdepartmental Commission are not limited solely to organizing the preparation of proposals for determining the terms of the competition, reviewing materials submitted by the competition participants, conducting negotiations with them, and preparing and submitting to the Cabinet of Ministers of Ukraine a proposal for determining the winners of the competition.

Thus, according to subparagraph 3 of paragraph 3 of the Regulation, the main task of the Interdepartmental Commission, in particular, is to organize the implementation of agreements.

The further cooperation of the Investor and the State depends on the decisions of this Сommission, therefore, the state authorized body, taking into account the decisions of the Сommission in order to obtain a position in resolving situations, is forced to be guided by its directives, regardless of its legal status (central executive body or authorized economic entity).

The Cabinet of Ministers of Ukraine, as a party to the agreement, dualized its mandate to the coordination body.

The Government of Ukraine has announced a competition for the conclusion of a production sharing agreement for the Dobra deposit

According to the State Service of Geology and Subsoil of Ukraine, the competition is being held to identify a potential investor for the search, extraction and enrichment of metallic minerals within the subsoil use object.

In accordance with Article 7 of the Law of Ukraine "On Production Sharing Agreements" and Resolution of the Cabinet of Ministers of Ukraine dated August 27, 2025 No. 1059, a tender has been announced for the conclusion of an agreement on the distribution of metallic minerals that will be mined and enriched within the Dilyanka Dobra deposit.

This is an important step for the development of the domestic mining industry and the integration of Ukraine into global supply chains of critical minerals. The start of international PSA competitions for critical minerals is one of the indicators of the implementation of the Ukraine Facility plan, - said the Head of the State Service for Geology and Mineral Resources of Ukraine Oleg Hotsynets. - The implementation of the competition will be an impetus for the formation of domestic high-tech production.

The Dobra deposit, with a total area of ​​17.07 sq. km, is located in the Kirovohrad region. It consists of two separate zones of closely located veins of ore-bearing pegmatites - Stankuvatskaya and Nadiya and three tungsten ore occurrences located on the eastern flank. The presence of two lithium minerals (petalite and spodumene) in the ores allows for selective production of spodumene and petalite concentrates.

A special permit will be granted to the winner for 50 years for the purpose of searching, mining, and enrichment (primary processing) of lithium, niobium, rubidium, tantalum, cesium, beryllium, tungsten, and gold.

Lithium ore reserves and resources are tested in quantities according to categories C2 (class code 122), average Li2O content – ​​1.34%; P1 (class code 333) – 1218135.1 t (average Li2O content – ​​1.37%) and P2 (class code 334) – 70634.5 t (average Li2O content – ​​1.43%). Prospective and forecast resources of associated useful components according to categories P1+P2 are separately noted.

Ukrainian and foreign companies can participate in the competitions, except for representatives of a state that is carrying out armed aggression against Ukraine or significantly contributing to the commission of such actions, as well as representatives of a country that does not comply with the recommendations of international organizations involved in the fight against money laundering, terrorist financing, or the proliferation of weapons of mass destruction.

The deadline for submitting applications for participation in the competitions is December 12, 2025.

You can familiarize yourself with the conditions and download the competition documentation on the official website of the Ministry of Economy, Environment and Agriculture of Ukraine at the following link: https://me.gov.ua/view/61759fb8-4a63-4f99-896f-8df688050e1a

Degree of openness of production sharing agreements

Despite all the strict confidentiality, there is still a loophole for those who believe that production sharing agreements should be open to the public.

On August 13, 2020, Judge Lydia Mugambe, a judge of the Civil Division of the High Court in Kampala, Republic of Uganda, ruled in Case No. 232 on a claim by one Samantha Atukanda against Neptune Petroleum for copies of the text of the production sharing agreement.

It is worth noting that the interests of the citizen were represented not only by the law firm Kakuru and Co, but also by a representative of the local prosecutor's office.

The claims were motivated by the fact that the citizen wanted to obtain a permit for subsoil use and conclude a production sharing agreement, and therefore wanted to know on what terms the production sharing agreement was concluded by the Ministry of Energy and Mineral Development of the Republic of Uganda with the company Neptune Petroleum.

As a basis for the statutory grounds, the applicant referred to Article 50 of the Constitution of Uganda, Subsection 41 of the Judiciary Act and Subsections 3, 4, 7 of the Bill of Rights and Freedoms 2008.

The position of the aforementioned Ministry was that access to oil and gas production was limited by technical safety conditions and a protective legal regime.

The investment agreement between the Ministry and Neptune Petroleum contains confidentiality provisions, as the information in the agreement is commercially sensitive.

Publication of an excerpt from the production sharing agreement could cause significant harm to the parties, and the reservations regarding the technical terms of the agreement itself would have lost interest and advantage for the parties if it were made available to anyone for review.

Lydia Mugambe, having analyzed subsection 73 of the Evidence Act, concluded that the production sharing agreement is a public act and its granting does not violate economic rights and freedoms, security and national interest.

The judge was convinced that confidentiality conditions should not have exceptional circumstances, and therefore the judge ordered the applicant to provide the text of the production sharing agreement.

The global approach to the publication of prodcution sharing agreements still maintains a high standard of confidentiality, and the information that can be made public in the form of an extract must be of public (rather than individual) interest and relate to an environmental aspect.

The practice of maintaining confidentiality of the terms of production sharing agreements in Ukraine is even higher than normal standards.

The degree of disclosure of information is agreed upon with the investor in maximum detail.

Commercially sensitive information is not provided under any circumstances and under any conditions.

Refractory clays

Ukraine has large reserves of refractory clays explored within the Donetsk folded region, the Dnieper-Donetsk depression, and the sedimentary cover of the Ukrainian crystalline shield.

The State Balance of Mineral Resources of Ukraine includes 18 deposits, of which 4 clay reserve accounting objects of complex deposits are being developed (14 deposits, including 1 accounting object).

However, the reserves of high-quality clays in the largest deposits (Chasiv-Yarskoye, Novoselytske) are almost exhausted, the grade of minerals being mined is decreasing, mining and geological conditions are becoming more complicated, the depth of quarries is increasing and, as a result, the cost of extraction is increasing.

To increase the mineral raw material base of refractory and refractory clays, it is planned to conduct:

-exploration work to identify high-quality refractory clays in the Kalmius-Torez and Bakhmut depressions of the Donetsk region;

- search, evaluation and exploration works in promising areas of refractory and refractory clays within the Dnieper-Donetsk depression (Poltava, Sumy and Kharkiv regions) and promising areas of the Ukrainian Crystalline Shield and its slopes.

Consideration of the Investor's Work Program and Budget in Production Sharing Agreements

The investor, sending for consideration to the representative of the other party to the production sharing agreement (the representative of the State) a draft annual Work Program and Budget, awaits its approval by the representative of the State.

Without approval by the State of the draft Work Program and Budget, the Investor may be exposed to the risk of incurring costs that may not be compensated in the future.

Considering that the State party will carefully and strictly consider the Work Program and Budget for approval, it is worth paying attention to the following.

The State may recommend that the Investor provide copies of documents regarding the circumstances of the Investor's acquisition of the rights and obligations of the Operator under the Production Sharing Agreement, as well as request an explanation and justification of the amount of expenses in the draft Work Program and Budget, broken down by item.

Planning of the draft Annual Work Program and Budget

Considering the phased nature of the implementation of the production sharing agreement, the Investor must develop and submit for approval to the State or a representative of the State a draft Annual Work Program and Budget for approval.

It is clear that production sharing agreements determine the conditions and algorithm for the approval procedure of the draft Annual Work Program and Budget, rather than the aspect of the «fullness» of the Program itself.

It is impossible to resolve half of the practical issues in detail, but the procedure for signing amendments to the production sharing agreement is also too long, especially on the part of the State.

During the implementation of the production sharing agreement, questions arise about the investor's compliance with all components of the draft Annual Work Program and Budget under martial law, the consequences of not approving the Programs or their return or even refusing to reject the Program.

How to qualify a violation of the terms of a production sharing agreement by the State?

The rejection of the investor's proposals shall contain a detailed list of the oil and gas activities rejected by the State representative, a detailed explanation of the reasons for the rejection of any oil and gas activity, and a detailed explanation of the conditions and identify the specific proposals that the State representative considers necessary for the Operator to obtain approval. 

 

Regarding the possibility for scientific polygons to enter into product sharing agreements

To determine the prospects for gas potential, scientific testing grounds, science parks are being created, which receive special permits for the use of subsoil.

The granting of a special permit for the use of subsoil, the extension of its validity, and amendments to the special permit for the use of subsoil are carried out in accordance with the agreement on the terms of use of subsoil (Part 2 of Article 16 of the Code of Ukraine on Subsoil No. 132/94-VR dated July 27, 1994).

Under the terms of this Agreement, the spatial boundaries of the subsoil area, as well as the degree of geological study and development of the subsoil user's object, are indicated in the characteristics of the subsoil area, which is Appendix No. 1 and an integral part of the Agreement (clause 2.2 of the Standard Form of the Agreement on the Terms of Subsoil Use).

In turn, scientific testing grounds are created to conduct research for the purpose of geological study and changes in the geological environment over time and the impact of the existence of open-pit mining on the preservation of hydrocarbon deposits, studying the possibility and feasibility of developing residual local deposits confined to previously explored trap structures.

Having conducted a comparative scientific analysis and compared geological and geophysical data obtained during the research process, scientific polygons focus their attention on the migration of fluids in time and space, as well as the dynamics of reservoir systems, the operation of which has been influenced by existing mining operations for a long time.

The results of scientific research conducted by scientific testing grounds will be a prerequisite for discovering new hydrocarbon deposits in Ukraine and increasing production at existing fields, as well as allowing the development of recommendations for the restoration of depleted fields.

Conducting seismic surveys, drilling exploration and exploratory wells, as well as conducting various types of geological surveys will make it possible to determine a new direction for oil and gas operations in a particular region.

Considering that the form of the Special Permit for the Use of Subsoil for the Purpose of Geological Study of Oil and Gas Subsoil, Including Experimental and Industrial Development of Fields, with Subsequent Production of Oil and Gas became invalid due to the cancellation of types of special permits, the only option for science parks to operate is to conclude product sharing agreements.

By entering into a production sharing agreement, science parks automatically receive a Special Permit for the extraction of hydrocarbon raw materials.

Secondary kaolins in Ukraine

Secondary kaolins are widely used in the metallurgical industry (for the manufacture of refractory products), as well as in the ceramic, cement and other industries.

Kaolins must contain a minimum amount of calcium oxide, which provides them with appropriate refractoriness. Deposits are concentrated on the Ukrainian Crystalline Shield.

The State Balance of Mineral Resources of Ukraine includes 8 secondary kaolin deposits (Volodymyrivske, Kirovohradske, Murzynske, Novoselytske, Oboznivske, Yasnopolyanske, Balashivske and Polohivske).

To increase the mineral raw material base of secondary kaolins (especially higher grades), it is planned to conduct prospecting, prospecting and evaluation and exploration works in promising areas of the Ukrainian Crystalline Shield and its slopes.

Molding sand as a mineral

Ukraine fully meets the needs of its metallurgical and machine-building industries in molding sand, and also exports it to a number of countries.

Formation sand deposits and promising objects are localized in the Cretaceous, Paleogene-Neogene and Quaternary sediments of the Donetsk folded region, the Dnieper-Donetsk and Black Sea depressions, the Volyn-Podilskyi plate and the Ukrainian crystalline shield.

The state balance of mineral reserves of Ukraine includes 14 deposits (Husarivske, Chasiv-Yarsk, Bantyshivske, and others) and 6 accounting objects in which the reserves of molding sand are approved as associated minerals. 4 deposits and 6 accounting objects are being developed.

To increase the mineral and raw material base of molding sands, it is planned to conduct geological exploration work on molding sands within the promising areas of the Dnieper-Donetsk Depression, the Donetsk Fold Region, the Volyn-Podilsky Plate, and the Ukrainian Crystalline Shield.

Subsoil user's electronic account in Ukraine

The purpose of creating and maintaining the Electronic Cabinet is to ensure the conditions for interaction between applicants/subsoil users and the State Service for Geology and Subsoil through appropriate automated workplaces.

Interaction is implemented through a portal solution for users of the Electronic Cabinet using services, information resources, and software and hardware solutions.

Processing of such applications and documents is carried out through automated workstations of the administrator of the Electronic Cabinet, state authorities and local governments, and employees of the State Service for Geology and Mineral Resources.

The functionality of the Electronic Office provides:

- access of users of the Electronic Cabinet to the corresponding automated workplace after completing the electronic identification/authentication procedure using an integrated electronic identification system, electronic signature and/or seal based on a qualified public key certificate;

- ability to create, edit, upload and submit documents and information, as well as automatic registration of submitted electronic documents;

- receiving information about control measures planned by the holder of the Electronic Account;

- automation of the processes of creation, collection, receipt, storage, use, distribution, protection, and security of information (information and/or data), as well as the creation, processing, sending, transmission, receipt, storage, and use of electronic documents in the field of geological study and rational use of subsoil;

- creation and submission of applications and documents: for obtaining a special permit for the use of subsoil; for extending the validity period of a special permit; for amending a special permit; for initiating a subsoil plot for auction; for registering artesian wells; for registering oil and gas wells;

- providing extracts from registers and databases generated using the Electronic Office;

- visualization using the contours of subsoil areas of valid special permits of the applicant/subsoil user;

- checking the entered coordinates of the subsoil area for intersection with subsoil areas with valid special permits, for which relevant applications have been submitted, a competition has been announced for the conclusion of production sharing agreements, contours of mineral reserve calculation plans, objects of the nature reserve fund, contours of subsoil areas;

- providing information to the holder of the Electronic Account on the elimination of violations established in the regulations and identified during the implementation of state geological control measures over the conduct of geological study work and rational and effective use of subsoil;

- signing an agreement on the terms of subsoil use;

- posting an information sheet regarding the amount of the fee (charge) for granting a special permit for subsoil use, extending its validity period, and making changes to a special permit for subsoil use.

Electronic information interaction of the Electronic Cabinet with electronic information resources is carried out using the system of electronic interaction of state electronic information resources.

The electronic office is a component of the unified state electronic geoinformation system for subsoil use and a functional module of the Unified Ecological Platform "EcoSystem".

Access to the Electronic Cabinet is provided through the State Geological Web Portal, the Unified State Electronic Geoinformation System for Subsoil Use.

The electronic office operates 24/7, except for scheduled and unscheduled preventive and/or technical work related to the elimination of technical and/or methodological errors or technical malfunctions.

Registration of submitted applications and documents is carried out exclusively on working days and during the working hours of the holder of the Electronic Account. 

Authorized access to the Electronic Cabinet is carried out using a qualified or advanced electronic signature (hereinafter referred to as the electronic signature). After authorization, the applicant/subsoil user is granted access to his automated subsoil user workplace.

Bentonite clays in Ukraine

Approximately 100 deposits and occurrences of bentonites are known in Ukraine, the most significant deposits are in the Transcarpathian, Cherkasy, Ternopil, Khmelnytskyi regions and the Autonomous Republic of Crimea. However, most of the known deposits are not of industrial importance due to the small reserves of bentonites or the difficult mining and geological conditions of their occurrence.

Due to the fact that alkaline earth bentonites, which are not suitable for the production of iron ore pellets, are mostly common in Ukraine, a certain amount of alkaline bentonites is imported.

To increase the mineral and raw material base of bentonite clays, it is planned to conduct search, evaluation and exploration works in promising areas of the central and southern regions of Ukraine in order to identify and evaluate bentonite clay deposits.

Flux limestones and dolomites

In Ukraine, large deposits of high-quality flux limestone have been explored in the Crimean and Donetsk folded regions and the Indo-Kuban trough.

The state balance of mineral reserves of Ukraine includes 14 deposits of flux limestones, including 11 - flux limestones (non-magnesian) and 3 - complex (non-magnesian and magnesian). The state balance also includes 7 dolomite deposits, 4 of which are being developed.

There are also 7 dolomite deposits on the state balance sheet, 4 of which are being developed. 

Despite significant total reserves of refractory dolomites, Ukrainian enterprises experience a shortage of high-quality, high-quality grades of flux limestone suitable for converter and electric smelting steel production.

In addition, the situation with this mineral is complicated by the fact that the territories of most deposits are temporarily occupied (Donetsk, Luhansk regions, the Autonomous Republic of Crimea and the city of Sevastopol), which requires the search for alternative sources.

To increase the mineral raw material base of flux limestones and dolomites, it is planned to conduct:

-technological research on the possibility of obtaining high-quality flux raw materials for converter and electric smelting steel production;

-exploration and exploration and appraisal works in the Donetsk folded region and in the southwestern part of the East European Platform;

-reassessment of explored carbonate deposits in the western regions of Ukraine as flux deposits.

Fluorite

The main consumers of fluorite (fluorspar) are plants that produce ferroalloys and welding fluxes, as well as metallurgical plants, heavy engineering plants, shipbuilding plants, and aluminum industry enterprises.

Significant deposits of fluorspar are known in the eastern part of the Ukrainian Crystalline Shield, on its southwestern and northern slopes. Promising occurrences also occur in the central part of the Ukrainian Crystalline Shield - in the Kirovograd tectonic zone.

The state balance of mineral reserves of Ukraine includes two fluorspar deposits - the Bakhtyn deposit in Transnistria, whose reserves amount to 18 million tons, and Pokrovo-Kiriyivske in the Azov region, as well as two deposits with associated fluorine content in apatite - Stremyhorodske and Novopoltavske.

All four deposits are not exploited due to the lack of significant capital investments for their development. 

The Bakhtyn fluorite deposit in Transnistria has been explored and prepared for experimental and industrial exploitation.

To increase the mineral and raw material base of fluorite, it is planned to conduct exploration and evaluation works:

 -on the flanks of known deposits and their reassessment;

-within the Sushchano-Perzhanskaya zone to detect rare-earth fluorite;

-within the scope of the distribution of promising geological complexes of the Ukrainian Crystalline Shield for fluorite.

Non-metallic minerals and their importance

Non-metallic minerals are of extreme importance for the national economy and are used in metallurgy, mining, chemical and agro-industrial complexes, and in construction.

At the same time, non-metallic minerals are used mainly in their natural state.

Over the more than century-old history of Ukrainian metallurgy, a powerful industry has been created for the extraction and primary processing of non-metallic minerals, which are associated with it by technological processes.

Ukraine used to fully satisfy its own needs for all types of such minerals (limestones, dolomites, quartzites, refractory clays, alkaline earth bentonites).

However, recently, problems have arisen due to general progress in metallurgy and a significant increase in the quality requirements for non-metallic minerals.

Some types of non-metallic minerals (magnesite, fluorspar, alkaline bentonites) for the metallurgical industry of Ukraine are imported.

A similar situation has developed with the need for non-metallic minerals in other sectors of the state's economy.

Among non-metallic minerals, the following groups are distinguished: flux raw materials, molding and for agglomeration of iron ore concentrates, refractory, chemical, agrochemical, adsorption, abrasive, glass and porcelain-faience, optical and piezo-optical, electrical and radio engineering, jewelry, as well as construction raw materials for various purposes.

Gold and silver deposits in Ukraine

There are three gold-bearing provinces on the territory of Ukraine: the Carpathian Gold-Bearing Province, the Ukrainian Crystalline Shield, and the Donbas.

The Carpathian gold-bearing province is one of the most thoroughly studied. According to preliminary estimates by experts, the total forecast resources of this territory are: gold - 400 tons, silver - 5.5 thousand tons, lead - 2.7 million tons, zinc - 5.3 million tons.

The Muzhiivske deposit and the Saulyak deposit have been explored here (the Saulyak deposit has been previously explored, reserves have been approved). 

The Beregovske gold-polymetallic deposit with ores of similar composition is directly adjacent to the Muzhiivske deposit.

The gold content of the Donetsk basin has been studied for a long time, but due to the lack of thorough research, there is no unambiguous assessment of it. 

The total forecast resources of Donbas are estimated at 400 tons of gold. 

The Bobrykivske deposit of gold-sulfide ores, which is small in terms of reserves, has been discovered here.

The main gold-bearing province of Ukraine is the Ukrainian Crystalline Shield, within which the total resources are estimated at 2,400 tons of gold. 

The six deposits that have been studied most thoroughly are Mayske, Klintsevske, Yuryevske, Sergiyevske, Balka Zolota and Balka Shyroka. 

The estimated resources within them amount to over 620 tons of gold.

Based on this assessment, select the most attractive and promising objects of the Ukrainian Crystal Shield in terms of a set of characteristics to bring them to a level of preparation that is capable of providing clear information on typical issues of the largest gold mining companies in the world.

There is an urgent need to restore the operational capacity of laboratory and analytical centers, conduct experimental and industrial development, a complex of technological and semi-factory tests, as well as sufficiently long-term explanatory work to alleviate environmental and social concerns among the local population.

To increase the mineral and raw material base of platinum group ores, it is planned to create our own modern laboratory base and conduct targeted geological exploration work to detect platinum group metals in local areas and objects with an assessment of the prospects for their practical development.

Rules for preparing the Work Program and Budget of the Production Sharing Agreement

The most difficult issue for the investor is the formation of an annual work plan for the implementation of the Work Program and Budget (hereinafter referred to as the Program) of the Production Sharing Agreement.

The content of the Program must comply not only with the requirements of the Agreement, but also with the provisions of the legislation, according to which the Program must specify the volumes and types of financing, technological equipment that the Investor is expected to use on the site.

International standards for planning projects and programs in the oil and gas sector (ISO 29001, ISO 9001:15) recommend that developers use the Plan-Do-Check-Act (PDCA) cycle when planning projects, which allows for rational use of project resources, as well as taking action on opportunities for improvement.

To achieve the main goals of the program budget planning, the following proportions are usually observed: 

a) expenses to 20% for financial support of the Program management; 

b) expenses related to the impact of risks of up to 15%; 

c) expenses for the development of technical projects of 15%; 

d) expenses for the implementation of the Program tasks of 50%; 

e) other expenses in the amount of the balance.

Often a difficult issue for an Investor is the problem of categorizing expenses by groups and expense items. 

The two concepts above are usually differentiated in meaning and have different legal natures.

The expense item calculates the type of work by the amounts in the estimate of the Production Sharing Agreement, while the expense category, in general, explains to the Investor the generic name of the group of works on hydrocarbon production.

That is, the Production Sharing Agreement requires the Investor to submit, as part of the Annual Work Program and Budget, an estimate with a breakdown by cost item, since it is by cost items that it is possible to calculate the amount of cost overruns.

Scattered element. Rhenium

In Ukraine, for the first time in world geological practice, rather large (up to 50 microns) phases of metallic rhenium or its natural intermetallic compounds were discovered in the ultramafic rocks of the Kapitanivka Group.

Rhenium is an extremely rare scattered element with the lowest Clark (7 • 10-8) of all platinum and lanthanide elements. Until now, rhenium was known only as isomorphic impurities and was extracted in industrial quantities from other minerals (primarily from molybdenite).

In some cases, rhenium forms its own minerals, which therefore have no industrial value.

Rhenium - the metal of the future.

Its unique properties determine the main areas of application: radio electronics, electronic and vacuum industry, oil refining, aircraft construction (significant increase in engine life), instrument making, rocket and space technology, production of metal composites with unique physical and mechanical properties due to various percentage impurities.

Such alloys are high-tech (well-welded, very strong, yet plastic, and therefore retain their properties and shape in extreme operating conditions - high and ultra-high temperatures, pressure), used for the production of filaments with an increased resource, cathode heaters, thermocouples.

The demand for rhenium is unlimited. Today, its use is carried out in the volumes of extraction. According to experts, the demand for rhenium will only increase over time.

This direction includes:

-conducting geological and forecasting mapping of promising territories;

-conducting exploration and evaluation works on identified promising areas in order to assess their resource potential and determine (under favorable circumstances) the parameters of an industrial facility within its boundaries.

Beryllium in the structure of mineral raw materials of Ukraine

Due to its physical, mechanical, and thermal properties, beryllium is widely used in the electronics, aerospace, and alloy industries.

Beryllium mineralization, which has 11 manifestations, is quite diverse; among the genetic types, greisen, pegmatite, hydrothermal, and skarn deposits predominate.

The bulk of beryllium ore reserves are located in pegmatite deposits, in complex ores of rare-metal granite pegmatites.

In Ukraine, industrial reserves of beryllium ores have been discovered in the northwestern part of the Ukrainian Crystalline Shield (the central part of the Sushchano-Perzhanskoe tectonic zone), where the Perzhanskoe beryllium ore deposit has been explored.

The Perzhanske deposit (Pivnichna and Krushinka areas) is in the stage of preparation for development. Mineralization is confined to metasomatites of quartz-feldspar and feldspar composition. Beryllium reserves are sufficient to create a mining enterprise.

Promising beryllium resources have been recorded at the Novostankuvatsky, Lipnyazky and Tashlytsky ore occurrences, and beryllium oxide reserves have also been estimated within the Shevchenko lithium ore deposit.

To increase the mineral and raw material base of lithium ores, it is planned to conduct exploration and exploration and evaluation works within promising areas.

Rare earth ores, including yttrium

Fifteen lanthanides and their close relative yttrium constitute a group of rare earth ores, the demand for which is constantly growing.

The development of our own mineral and raw material base of rare earth metals, woithout which the production of high-quality competitive steels and alloys is impossible, is an urgent need.

Several hundred points of concentration of rare earth ores have been discovered on the territory of Ukraine, ranging from deposits to ore occurrences, which require evaluation.

Overall, this large area is the largest rare-earth metallogenic province in Europe, containing mineralization of almost all known endogenous and exogenous rare-earth formations.

The state balance of mineral reserves of Ukraine includes the Novopoltava deposit of apatite-rare metal ores (Zaporizhzhya region).

The Azov deposit has been discovered in the Azov part of the Ukrainian crystalline shield and is being studied. Based on the results of exploration and evaluation works, a preliminary feasibility study has been prepared.

To increase the mineral and raw material base of rare earth, including yttrium, ores, it is planned to conduct scientific thematic and regional geological research, exploration and exploration and evaluation work within the promising areas of the Ukrainian Crystalline Shield for rare earth mineralization.

Prospects for lithium mining in Ukraine

The prospects for creating its own lithium mineral raw material base and transforming Ukraine from an importer to an exporter of lithium products are assessed as high.

This is due to the real possibility of developing the Polokhiv and Shevchenkivsk deposits and the Dobra area (Nadiya and Stankuvatske) of petalite, spodumene and spodumene-petalite ores, respectively.

As a result of the development of five occurrences and other fields of rare-metal pegmatites, new promising objects may be explored.

To increase the mineral and raw material base of lithium ores, it is planned to conduct exploration and exploration and appraisal works within the promising areas of the Ukrainian Crystal Shield regarding lithium mineralization associated with pegmatites.

Tantalum and niobium

The resource potential of tantalum and niobium in Ukraine (37 occurrences) is the highest in Europe.Ukraine is able to fully satisfy its own needs for tantalum-niobium minerals.

Within the Ukrainian Crystalline Shield, there are three large rare metal areas of tantalum and niobium distribution: Azov, Central, and Northwestern (Volyn).

The Azov Sea objects, which have significant resources and reserves, as well as favorable mining, geological and hydrogeological conditions for development, have been thoroughly studied.

Provided these reserves are used in a comprehensive manner (zirconium, nepheline, feldspar), the deposits can be exploited profitably.

The most thoroughly studied is the large Mazurivske deposit, located in the Donetsk region.

Small-sized ore deposits (however, with a high tantalum content of 0.10-0.15 percent) have been discovered within the Hannivsko-Zvenyhorod zone (Mostove, Kopanky, Vys and others).

To increase the mineral and raw material base of tantalum and niobium ores, it is planned to conduct exploration and exploration and appraisal works within the promising areas of the Ukrainian Crystal Shield regarding tantalum-niobium mineralization associated with pegmatites.

Molybdenum

There are no explored molybdenum deposits in Ukraine, although its numerous ore occurrences are widespread in the territory of the Ukrainian Crystalline Shield.

Three areas have been identified that are highly promising for the discovery of industrial molybdenum deposits: the northwestern part of the Ukrainian Crystalline Shield, the Middle Dnieper Region, and the Eastern Azov Region.

Among the known objects are promising areas and specific promising ore occurrences prepared for exploration and appraisal work, exploration and further development.

First of all, the Verbynsky and Ustinivsky ore occurrences in the northwestern part of the Ukrainian Crystalline Shield, the "Chervona" area in the Kryvyi Rih district, and the East Serhiyivsky ore occurrence in the Middle Dnieper region.

The latter is a component of the vertical and lateral zonation of the Sergiyiv gold deposit, which under certain conditions can be considered as complex (gold-silver-copper-molybdenum).

To increase the mineral and raw material base of molybdenum ores, it is planned to conduct additional geological studies in order to prepare the most promising ore occurrences (areas) for exploration.