Stockholm Court approves amicable agreement between Ukraine and Vanco
Stockholm Arbitration Court approved an amicable agreement between Ukraine and Vanco in late December 2012, Ukraine's Ecology and Natural Resources Minister Oleh Proskuriakov told reporters in Kyiv on Wednesday.
"Stockholm Arbitration Court in late December approved an amicable agreement between Vanco and Ukraine," he said.
Proskuriakov said that there was no transfer of rights or obligations within the production sharing agreement during the conclusion of the amicable agreement.
Vanco International, which is 100% owned by Vanco Energy Company (the United States), in April 2006 won a Ukrainian government tender for the right to enter into production sharing agreements (PSAs) for extraction at the Prykerchensky field of the Black Sea continental shelf. In October 2007, Vanco Int. allocated its rights and obligations for the PSAs to Vanco Prykerchenska, which was founded in August 2007. Vanco Prykerchenska is owned in equal shares by Vanco International, DTEK Holdings Limited, Shadowlight Investments Limited of Russian businessman Yevgeniy Novitsky, as well as Integrum Technologies Limited.
The Ukrainian Environment Ministry in December 2007 issued a license to Vanco Prykerchenska for geological prospecting, research and the commercial production of oil, gas and gas condensate at the Prykerchensky field. Later, the ministry found that a number of violations of Ukrainian laws were committed during the tender and when the license was issued to Vanco Prykerchenska, and there was evidence of infringements by Vanco International of some PSA clauses.
In 2008, Prime Minister Yulia Tymoshenko's government cancelled the license of Vanco Prykerchenska and withdrew from the PSA. Vanco went to international arbitration, simultaneously offering the renewal of cooperation under the PSA to the government of Ukraine.
With the election of Viktor Yanukovych as Ukrainian president, the government lead by Mykola Azarov approved in April 2011 an amicable agreement with Vanco Prykerchenska.