A way to natural gas extraction in Ukraine is opening for EPH
20. 12. 2018
EP Power Europe, a.s. (EPPE), a subsidiary of the company Energetický a průmyslový holding, a.s. (EPH) has approached the possibility of natural gas extraction in the east of Ukraine. On 18 December 2018 the Ukrainian government approved an agreement on the reallocation of gas extraction revenues between the state and the company Yuzgaz B.V., a company which in the past won the opportunity to extract gas under the so-called Yuzivska license.
Just the closure of this agreement was one of the conditions for EPPE to be able to complete the process of buying a 100% stake in the Yuzgaz company from the Luxembourg company Emerstone Energy S.C. At the same time, EPPE takes over all commitments to the Ukrainian government arising from existing agreements with Yuzgaz on reallocation of gas extraction revenues.
In Ukraine, the technical operator of this project, will be the Slovak company NAFTA, a.s. Its majority shareholder with 56.15% of shares SPP Infrastructure, a.s., in which the Slovak state holds 51% and EP Infrastructure, a.s. (EPIF) the remaining 49%. EPIF is also part of the EPH group. EPH, through EPIF, also controls about 40% of NAFTA shares.
NAFTA is already active in Ukraine. Next year, three wells will be drilled under the Uzhgorod license, where Nafta cooperates with CUB Energy Inc.
“We perceive Ukraine as a prospective market where the collaboration of investor and state may bring positive effects for both parties,” says Robert Bundil, Project Manager of EPH.
The license for Yuzivska gas field covers an area of almost eight thousand square kilometers in the territories Kharkov and Donetsk. According to the assumptions, the volume of mining should rise up in a row to billions cubic meters per year. The gas will be used mainly for internal needs of Ukraine and for strengthening the self-sufficiency of natural gas extraction in the country.