Ukrgazvydobuvannia asks court to terminate almost all joint activity contracts – company head

15:02, 03.02.2016 1 min read

PJSC Ukrgazvydobuvannia has appealed to court on the issue of terminating almost all contracts on joint activities for gas production, company head Oleh Prokhorenko has said.

"We've filed a lawsuit to terminate almost all joint activity contracts," he said at a press conference in Kyiv.

According to Prokhorenko, the reason for this is the failure to fulfill obligations. In particular, all parties of the contracts produced 1.159 billion cubic meters of gas in 2015 with the target being 1.5 billion cubic meters.

"The rate has not been reached because necessary funds were not invested, well repairs scheduled for 2015 were not carried out," he said.

He also announced the availability of claims in terms of the non-fulfillment of obligations regarding the installation of automated metering devices and the price of gas sales.

In addition, he said the State Geology Service has suspended special permits for Ukrgazvydobuvannia deposits because of non-payment of royalties for some fields.