Ukrgasvydobuvannya filed a lawsuit following the results of bidding for the contract on the distribution of hydrocarbons to be produced at the Varvynska field

Dec 17, 2019 | Category: Official
Ukrgasvydobuvannya filed a lawsuit following the results of bidding for the contract on the distribution of hydrocarbons to be produced at the Varvynska field

Last week, December 13, Ukrgasvydobuvannya filed a claim with the Kyiv District Administrative Court on cancellation of the decision of the inter-agency commission on organization of conclusion and performance of the production sharing contracts (PSC) as regards the opinions and bids for determining the successful bidder for the Varvynska field.

Ukrgasvydobuvannya considers the opinions of the inter-agency commission to be in violation of the legitimate interests of the state company, and asks the court to declare them unlawful and to oblige the commission to re-evaluate the bids.

According to the plaintiff, the basis for the lawsuit was the non-compliance of the other participant's bid (Ukraine Energy LC LLC) with the minimum requirements approved by the CMU for the tender. According to the company, the score on the most important criteria assigned by the commission is disproportionately high relative to the bids of the winner. In particular, it refers to the production program, work experience and investment.

Ukrgasvydobuvannya believes that the company’s bid was more competitive, including the investment of UAH 1.5 bln and a work program providing for the 750 km2 3D-seismic survey. 

Ukrgasvydobuvannya looks forward to a fair proceedings and to making a legitimate and fair decision to re-consider objectively the participants’ bids by the inter-agency commission in order to ensure equal rights of potential investors and to obtain the greatest benefit for the state from the conclusion of contracts on the distribution of domestic hydrocarbons.