Yuzgas to issue $200 mln for five-year geological exploration of Yuzivska field

15:14, 10.08.2016 1 min read

Yuzgas B.V. (the Netherlands), which won the tender for an investor in the production sharing agreement (PSA) for hydrocarbons extraction on Yuzivska field (Donetsk and Kharkiv regions), has undertook during the first five-year phase of the PSA to invest $200 million in geological exploration.

"In particular, during the first year the sum will be $20-30 million," Nadra Yuzivska Director Viktor Nazarkevych said at a press conference in Kyiv.

He added Yuzgas, founded by the Emerstone Energy private equity firm, which provided guarantees for $200 million, has also committed to drill the first well in the first year.

Nazarkevych noted the offers of other participants were significantly worse: Vitol oil trader's subsidiary Balkhash with $10 million, and Burisma Holdings with UAH 2.7 billion (equivalent to $108 million).