Project Title: Providing services in oil and gas fields assessment.

This document was prepared by the Ministry of Foreign Economic Relations of Ukraine in conjunction with UNIDO in March of 1996 and has been posted to the Internet with the permission of the NY District Office of the Ukrainian Trade Mission. It is an abridged version of the UNIDO application as prepared by the Ukrainian applicant. For further information or a copy of the full report, you may reach the Chief Ukrainian Trade Representative Mr. Ihor Gayduchok at the Consulate General of Ukraine, 240 E. 49th St., New York, NY. Voice/Fax message center: 212-371-5895 or by E-Mail at gayducho@panix.com

1.1. Name of Sponsor: Ukrainian International Forum Kiev
Address : 252010 Ukraine, Kiev, Janvarskogo Vosstania St. 11A Buro: 108, 113, 115
Phone : (038044) 290-12-30, 290-37-51
Telex : Fax : (038044) 290-72-59
Contact Person : Mr. S. Pachkovsky - President,
Mr. D. Makarenko - Executive director,
Mrs. S. Koptseva - Manager of investment projects

1.2. Business experience (of the proposed applicant):

• One of the major foreign trade organizations in Ukraine, UZNG gathers oil and gas enterprises, machine-building complexes, as well as banks and scientific institutes. The main business activities are local extraction and import of petroleum and natural gas, and export of marketable production, advanced technologies and services.
• Competing firms are CGG, Geco-Prakla, Western Geophysical.

1.3. Annual Turnover (gross sale in US$) : 500 million US$

1.4. Present ownership : mixed joint stock company

1.5. Share capital (nominal) : 2.9 million US$

1.6. Bank connections : Ukrneftegazbank, Gradobank

1.7. Affiliated companies: representative offices in Russia and China.

1.8. Year of establishment: 1992

1.9. Number of employees: 200

2.1. Describe briefly the purpose of the project:

• To provide services in oil and gas fields assessment.

2.2. Is this a new project or an expansion/modernization of an existing project?

• NEW

Who initiated the project and when?

• The company, in 1994.

2.3. What background information is available on the project?

• Technical study, Market study, Detailed Project Description

2.4. Describe the main characteristics of the product(s) to be produced (type, quality, etc.)

• Three-dimensional seismoprospect services and monitoring of deposits for petroleum and gas companies in Ukraine, Russia and other countries.

2.5. Give the conversion rate of the local currency to the US $ to be applied to the information provided

• 1US$= 170,000 Krb Date: October 1995
  

2.6. Estimated investment costs (in Millions of US$)

• Investment inputs of local partner (equity & local loans) 0.12
• Investment inputs expected from foreign partner 5.5
• Total investment required for the project 5.62

Proposed sources of financing by the local partner

• Equity 5.62

2.7. Foreign cooperation sought (please indicate types of cooperation preferred - more than one allowed):

• Joint Venture
• Compensation agreement (buy back)
• Equipment purchase

2.9. Approximately how much time do you estimate will elapse from the time the investment decision is taken (e.g. when joint venture contract is signed) to start-up of the plant?

• 6 months

LOCAL MARKET

At what rate is the local market expected to expand over the next few years?

• 50 %

RAW MATERIALS AND INTERMEDIATE PRODUCTS

What are the existing or planned capacities for local production of materials and intermediate products, e.g. how large are the proven and exploitable reserves of local materials?

• The services to be provided do not require any raw material or intermediate product.
  

LABOUR

• Unskilled 50
• Skilled & technical 20
• Clerical/admin. 5
• Management 5

Pay rates: (US $) Total

• Unskilled 5 per day
• Skilled and technical 10 per day
• Clerical/administration 150 per month
• Management 200 per month

This page is maintained on behalf of the Ukrainian Trade Mission (NY Office) by Myroslaw Smorodsky. All inquiries may be E-Mailed to him at myroslaw@access.digex.net

Last modified on 30 November, 1996