Energy Ministry proposes transferring 90% of Nadra Yuzivska's rights in PSA on Yuzivska field to Yuzgaz
The Ministry of Energy and Coal Industry has proposed the Cabinet of Ministers of Ukraine to allow the transfer of 90% of Nadra Yuzivska's rights and liabilities in the production sharing agreement (PSA) on Yuzivska deposit (Kharkiv and Donetsk regions) to Yuzgaz B.V. (the Netherlands).
According to the documents for today's meeting of the government committee on the fuel and energy sector, promulgated by MP Viktoria Voitsytska, the draft cabinet resolution was submitted to the Energy Ministry on January 26, 2018.
"The ministry believes that Yuzgaz, which uses modern methods of work, has the best chance of conducting the successful exploration and extraction of gas on Yuzivska deposit and can conduct them much cheaper than Shell (which refused participation in the PSA on Yuzivska field), since it has smaller production and administrative costs," the document reads.
As reported, in July 2016 Dutch-based Yuzgaz won the tender to attract an investor for the implementation of the PSA for production of hydrocarbons on Yuzivska deposit, but the Cabinet of Ministers on November 2 of the same year refused the company participation in the project.
Yuzgaz contested the cabinet resolution in court.