Public joint-stock company Ukrgazvydobuvannia has dismissed a bid of Drilling Energy Technics Limited that offered the third smallest price for all 15 lots of a tender to attract external contractors to drilling works in Kharkiv and Poltava regions to produce gas and oil in 2017-2019.

The company said in the ProZorro e-procurement system that Drilling Energy, Victorious Company LLC, as well as Pivnichgasresource LLC, failed to meet the conditions of the tender procedure.

Currently the offers of Smith Ukraine (three lots), Poltava Drilling Works Enterprise (two lots), Spetsmechservice (three lots), Poltava Services (two lots), Nadra Ukrainy (four lots) and Crosco Integrated Drilling & Well Services (one lot) are being considered.

As reported, late October 2016 Ukrgazvydobuvannia announced a tender to attract external contractors to drilling works with the expected cost of UAH 13.036 billion (VAT included).

Pivnichgasresource cut the price for each lot out of 15 lots with the expected cost from UAH 581.25 million to UAH 1.093 billion (VAT included) by six times, and Victorious Company – by four times. The companies are located at the same address.

Drilling Energy Technics Limited (DETL) cut the price by 2-2.8 times from the starting price depending on the lot.

In general 15 companies took part in tenders with 15 lots.

Ukrgazvydobuvannia seeks to boost gas production from 14.5 billion cubic meters (bcm) in 2015 and 2016 to 15.2 bcm in 2017, 16.5 bcm in 2018, 18.3 bcm in 2019 and 20.1 bcm in 2020.

The company intended to invest UAH 30 billion in 2017 in drilling and purchase of new equipment.