Ukrgazvydobuvannia states production decline, failure to meet investment liabilities under joint venture agreements
Public joint-stock company Ukrgazvydobuvannia has decided not to sign joint venture agreements anymore for gas production as production under these agreement declined and investment liabilities are not fulfilled, the company's press service has reported.
The press service said that the last agreement was signed with the company in January 2014 and in 2015-2016 Ukrgazvydobuvannia did not sign any joint venture agreement.
"New managers did not sign new joint venture agreements for gas production and do not plan to do this, as the form of partnership was economically unviable. We see a large decline in production, violation of investment liabilities and reduction of expenses on modernization and repair of well equipment under these agreements," Law Director at the company Olena Kobets said.
She said that the company filed claims to courts asking to void the agreements. Seven cases are heard by courts today.
Pretrial negotiations are being held for one more joint venture.
Totally the company has eight joint venture agreements. They were signed in 2002 (one), 2004 (five), 2007 (one) and 2014 (one).
The company signed under joint venture agreements with Karpatygaz LLC, Dion LLC, Nadra Geocenter LLC, Techproject LLC, KhAS Firm LLC, Karpatynadrainvest LLC, Natural Resources+ Llc and Tsefei LLC.