EPH group declares interest in the Yuzivska project
EPH group declares continued interest in the Yuzivska project and is prepared to assume the relevant investor's undertakings as well as to issue a parent company guarantee to ensure availability of the necessary resources for due implementation of Yuzivska project.
EP Power Europe a.s., being a member of EPH group, preserves its interest in the Yuzivska project on the production sharing terms in relation to the Yuzivska Block, which officially confirmed to the Prime minister of Ukraine and relevant government offices.
“In reaction to recently publicized speculations EPH group would like to declare continued interest in the Yuzivska project and its readiness to assume the relevant investor's undertakings under approved Production Sharing Agreement. Our subsidiary company EP Yuzivska is prepared to sign PSA as approved by CMU and EPH is prepared to issue parent company guarantee to ensure availability of the necessary resources for our due implementation of the Yuzivska project and swiftly development of the project immediately after its assignment. Knowing the project, we are ready to guarantee early production hydrocarbons for Ukrainian market” said Daniel Častvaj, spokesman of EPH.
Technical development of the Yuzivska block should be secured by Slovak production company NAFTA a.s. (main shareholders are EPH group and state of Slovakia) possessing significant experience in a number of countries in the oil and gas upstream operations and currently operating in Slovakia, Czech republic, Germany, Ukraine and United Kingdom. In Ukraine NAFTA a.s. already actively develops two exploration&production licenses and is in process of negotiation of PSAs on Hrunivska and Okhtyrska blocks. All information on the experience and financial position of the group was approved by Interagency Commission on the Arrangement and Implementation of Production Sharing Agreements and now company expect CMU approval on assignment of finalized Production Sharing Agreement.
Yuzivska project – is a greenfield project located in Donetsks and Kharkiv regions. Area is characterized by high geological risks, absence of identified perspective structures and requires large-scale exploration works. The Investor shall fund the Initial Geological Survey Work Program through its Initial Commitment. The Initial Commitment shall be an amount of two hundred million US Dollars ($200,000,000) or its Hryvnia equivalent.
Energetický a průmyslový holding (EPH) is a leading Central European energy group that owns and operates assets in the Czech Republic, the Slovak Republic, Germany, Italy, the UK, France, Hungary and Poland and currently employs around 25 000 people. Group assets in 2019 achieved 16,7bn EUR, revenue 8,6bn EUR and EBITDA 2,1bn EUR.