The court invalidated the special permission of Arkona to develop the Svistunkivsko-Chervonolutsk field – Ukrnafta

Ukrnafta reported that on July 1, Kyiv District Administrative Court invalidated Arkona Gas-Energy LLC's license to develop the Svistunkivsko-Chervonolutsk field.

The case had been in court since October 2019.

Ukrnafta owned a special permit for geological exploration and pilot development of the Svistunkivsko-Chervonolutsk gas field from 2004 to 2014. Subsequently, the company took all actions to prolong the special permit and intended to obtain a special production permit as a subsoil user, which prepared the corresponding field for industrial development. But a special permit without a public tender, in violation of the procedures established by law, was granted to Arcona Gas-Energy LLC.

The court satisfied the claims of PJSC Ukrnafta in full.

“The company hopes that NABU and other competent authorities will intensify investigations into the illegal issuance of special permission by officials of the State Service for Geology and Subsoil to Arcona Gas-Energy LLC, thereby causing substantial property damage to the interests of the state,” the statement said.

Ukrnafta also calls on managers and shareholders of the public company Regal Petroleum plc, which acquired Arkona Gas-Energy LLC for $8.6 million, to refrain from further implementation of the sale and purchase transaction of 100% of the charter capital of this company, because its only valuable asset (a special permit for the use of the subsoil of the Svistunkivsko-Chervonolutsk field) was declared invalid in court.

To recap, in March Ukrnafta sent a letter to the management of Regal Petroleum plc with a recommendation to refrain from buying Arkona Gas-Energia due to corruption risks associated with obtaining special permits for the Svistunkivsko-Chervonolutsoe field.

Tags: The Cabinet of Ministers, Naftogaz, contracts, oil, hydrocarbon production, corruption, court, legislation, Top management, energy market, Ukrnafta, добыча нефти, drilling, Public Service of Geology and Subsoil of Ukraine, Oil refinery plant, monopoly, investments, price, agreement, volumes, oil products, well, field, energy sector, oil companies, Buslavets, The Ministry of Energy, economy, market, oil and gas industry, oil production

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