Yuzgas B.V. (the Netherlands), which won the tender for an investor in the production sharing agreement (PSA) for hydrocarbons extraction on Yuzivska field (Donetsk and Kharkiv regions), has undertaken an investment of $200 million in geological exploration during the first five-year phase of the PSA.
“In particular, during the first year the sum will be $20-30 million”, Nadra Yuzivska Director Viktor Nazarkevych said.
Yuzgas, founded by the Emerstone Energy private equity firm, which provides guarantees for $200 million, has also committed to drill the first well in the first year.
Nazarkevych noted the offers of other participants were significantly worse: Vitol oil trader’s subsidiary Balkhash with $10 million, and Burisma Holdings with 2.7 billion UAH (equivalent to $108 million). (Interfax/Business World Magazine)