Svitlana Teush made a presentation on Legal Developments and Trends in the Upstream Sector at the IV Ukrainian Gas Forum

At the fourth Ukrainian Gas Forum, Svitlana Teush, Counsel in Redcliffe Partners' energy and infrastructure practices, made a presentation titled "Legal Developments and Trends in the Upstream Sector".

She outlined certain major positive developments in the sector, namely: reduction of royalty for oil & gas production from newly drilled wells; introduction of the special royalty for production sharing agreements; payment of royalties to local budgets; deregulation and cancellation of a number of permits, e.g., the mining allotment act and the top-soil removal permit; cancellation of the fee for extension of licences; enabling uninterrupted land use during the transition from exploration to commercial production; assignments of licences to subsidiaries; adoption of the law on transparency in extractive industries based on the EITI standards; and the limitation of exemptions from the auction procedure).

However, certain problems persist, including: codification of laws; access to geological information, its quality, adequacy and transferability; transferability of licences; implementation of auctions; reactivation of "idle" licences, etc.

Svitlana also addressed the risk sharing and incentive-based contracts (production enhancement contracts) which are being introduced in Ukraine.