Ukrgasvydobuvannya JSC gained full control over gas wells and compressor stations that used to be in joint activities (JA) with Karpatygaz LLC and Misen Enterprises AB. The assets passed into Ukrgasvydobuvannya JSC ownership under company's terms defended in the Arbitration Institute of the Stockholm Chamber of Commerce.

Thus, in course of arbitral proceedings Karpatygaz LLC and Misen Enterprises AB claimed a share of 50.01% in joint activities. However, the court satisfied the claims of Ukrgasvydobuvannya JSC by reducing the share by more than half — to 23.9117%.

The final amount of compensation for this share was determined by EY's financial experts. It is less than the cost estimates under other possible methods. Moreover, in arbitral proceedings Ukrgasvydobuvannya JSC defended its full ownership of natural gas and other hydrocarbons produced during 2017 — H1 2018 period that was also the matter in dispute.

“After several years of difficult trial with Karpatygaz LLC and Misen Enterprises AB, we defended our rights and interests. Ukrgasvydobuvannya JSC gained control over more than 100 wells and obtained full ownership for 7 booster compressor stations that provide natural gas production from 26 fields. This means that the company will be able to fully produce hydrocarbons from them that under the joint activity agreement had to be distributed among all the participants till 2031,” Olena Kobets, Ukrgasvydobuvannya JSC Director General, said.

“Compressor stations, that used to be in joint activities, compress more than 40% of Ukrgasvydobuvannya's gas. From now on, we will be able to fully utilize them as a part of company's unified surface facilities system. By bringing these facilities to the optimal operating modes, we will also be able to optimize the operation of a large number of wells in depleted fields,” Oleksandr Romanyuk, Director of the Naftogaz Exploration and Production Division, said.