We are happy to announce that the Production Enhancement Contract (PEC) between UkrGasVydobuvannya (UGV) and Expert Petroleum has been shortlisted for the Deal of the Year award in Ukraine by CEE Legal Matters.
Redcliffe Partners’ team, comprising Partner Dmytro Fedoruk and Associate Vlad Zakon, was pleased to assist UGV with the PEC deal, which was signed in April 2020. This is the first PEC project in the history of Ukraine’s oil & gas industry.
The principal purpose of the PEC is to assign UGV’s management and operational functions to Expert Petroleum, an experienced European PEC contractor, which will invest at least USD30 million in the development of 13 mature oil & gas fields in Western Ukraine with the purpose of enhancing production and improving the associated infrastructure. The PEC is for an initial 15-year period, subject to an extension for a further 10 years.
It is expected that the PEC project will contribute to an increase of 300 million cubic metres of natural gas within the first five years. The successful completion of the PEC project will add more than UAH4 billion (approximately USD145 million) to Ukraine’s GDP and bolster the economy of the Lviv region.
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UGV is the largest gas producer in Central and Eastern Europe and a part of the state-owned Naftogaz Group.
Expert Petroleum is a French-owned company that is part of the GMS holding group, a large investment group with assets all around the world.
The CEE Deals of the Year Awards were created in 2017 by CEE Legal Matters, the leading source of news and information about lawyers and the legal industry in Central and Eastern Europe, to highlight the transactions, financings, IPOs and other deals that underpin growth throughout the region — and the lawyers and law firms who make them happen.