Slovakia's Nafta intends to become PSA operator for Yuzivske gas field

Source : 112 Ukraine

Nafta Board Chairman, the key owner of Czech energy group EPH Daniel Kretinsky met with Ukrainian Prime Minister Volodymyr Groysman last week
13:32, 21 August 2017

Open source

Slovakia's Nafta, a leading oil and gas company in the country that explores fossil fuel fields on the Slovak-Ukrainian border wants to become a participant, investor and operator of the product sharing agreement (PSA) for the Yuzivske gas field (Kharkiv and Donetsk regions). This was reported by Interfax-Ukraine.

"Nafta is ready to become a participant in Yuzgaz as soon as the Cabinet of Ministers approves the assignment of rights and obligations from Nadra Yuzivska LLC to Yuzgaz and become the operator," Deputy Director of the exploration and production department of Nafta and CEO of CNG LLC (Vovkove,Uzhgorod district) Martin Slovak said at a meeting of the interagency commission for PSA at the end of last week in Kyiv.

Slovak said that the previous week Nafta Board Chairman, the key owner of Czech energy group EPH Daniel Kretinsky met with Ukrainian Prime Minister Volodymyr Groysman.

Nafta wants to become an additional investor in Yuzgaz and the operator that will implement the project. The company is ready to take liabilities of the Shell company that left the project later.

"We plan to carry out all the works that Shell wanted to do in the first five years, but more effectively," he said.

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Slovak said that Nafta hired leading consultants and lawyers in Ukraine and the company is ready to invest in the near future.

Nafta acquired 50% in the Yuzhgorod gas field from U.S. Cub Energy Inc. in summer 2016 and has invested EUR 100 million in exploration works and conducted the seismic tests, he noted.

The co-founder of Yuzgaz from Canada Jaroslav Kinach, who once headed Ukraine Country office of the European Bank for Reconstruction and Development (EBRD), said that the second beneficiary via Emerstone Energy and Emerstone Capital Partners is his Canadian friend.

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The ultimate beneficiaries held talks with strategic investors in the past several months. The company arrived with its own strategic investor and wants to start negotiations with the Ukrainian commission, according to him.

As it was reported earlier, in July 2016 Yuzgaz won the tender to attract investors for the implementation of the PSA for production of hydrocarbons within Yuzivska deposit, but the Cabinet of Ministers on November 2 refused the company participation in the PSA.

Yuzgaz successfully blocked the cabinet resolution in court.

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