The Kyiv office of Baker McKenzie acted as legal counsel to EP Ukraine, a Dutch subsidiary of Czech Energetický a průmyslový holding (EPH) and Slovak NAFTA a.s., in connection with the structuring, negotiating and entry into two production sharing agreements with the Ukrainian government in relation to the Okhtyrska and Hrunivska blocks.
The production sharing agreements, signed on 8 November 2021, relate to petroleum products. They cover two separate areas of over 1,700 square kilometers in total in northeast Ukraine and represent an extensive investment program, including, in the first stage, the realization of seismic measurements and drilling of a significant number of exploration wells. Total investments are expected to reach dozens of millions of US dollars.
Robert Bundil, BoD member at NAFTA a.s. (nominated by EPH), stated:
The Baker McKenzie team members have acted not only as experienced energy transaction lawyers, but also, and more importantly, they have put their legal advice in a business context, which has helped us make the right commercial decisions. We are thankful to the team and Andrii Moskalyk in particular for the continuous support on these projects.
Andrii Moskalyk, counsel at the Baker McKenzie Kyiv office, who primarily focuses on energy, infrastructure and M&A projects and who led the Baker McKenzie team, commented:
We are proud to support EP Ukraine on these transactions, as it is important for the further development of Ukrainian oil and gas and servicing industries. We trust that these long-term projects will be a success for both the investor and Ukraine.