10:59 22.09.2016

Govt orders energy ministry to create working group to check Yuzivska field tender

2 min read
Govt orders energy ministry to create working group to check Yuzivska field tender

Ukraine's Cabinet of Ministers has ordered Ukraine's Energy and Coal Industry Ministry to create a working group with involvement of other agencies and law enforcers to check the lawfulness of holding a tender to select an investor to develop the Yuzivska field (Kharkiv and Donetsk regions).

MP from Samopomich Viktoria Voitsytska posted the extract from the minutes of the government meeting held on September 14 on her Facebook page.

According to the document, the working group would consist of representatives of the Economic Development and Trade Ministry, Interior Ministry, Foreign Ministry, Ecology and Natural Resources Ministry, Justice Ministry, State Service for Geology and Deposits, State Financial Monitoring Service, Nadra Ukrainy, Prosecutor General's Office and Security Service of Ukraine (SBU). Lawmakers can join the group.

People's Front from the government's coalition and Eurooptimists Interfactional Union named the tender to select an investor to develop the Yuzivska field non-transparent and non-public, demanding to present the details about its holding.

Earlier Shell developed the field, but late 2014 the company decided to leave the project due to hostilities in Donetsk region. The company finally left the project in September 2015.

Late October 2015, Nadra Yuzivska LLC managed by Nadra Ukrainy announced a new tender to select the investor.

Yuzgaz won the tender. It was founded by Emerstone Energy, part of Emerstone Capital Partners of businessman Jaroslav Kinach. Kinach was also President of Iskander Energy that sought to restore methane wells in Donetsk region. In 1990s he was Ukraine Country Head of the European Bank for Reconstruction and Development (EBRD) in Ukraine.

The area of the Yuzivska field is 7,886 square kilometers.

Yuzgaz would reiceve 90% in PSA agreement if the government approves it, while Nadra Yuzivska share will decrease from 100% to 10%.

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