JKX Returns Ukrainian Fields to Full Production

JKX Oil & Gas announced it returned all its fields in Ukraine to full production, as a consequence of Ukrainian state gas distributor’s green light to deliveries of gas to industrial customers. 

‘JKX announces that that it has received confirmation from the Ukrainian state gas distributor that 100% of its nominations for March delivery of gas to industrial customers have been accepted,’ the company said in a note released on Monday.

Kiev issued a decree at the end of November forcing major industrial buyers to buy gas only from the state-owned Naftogaz for the following three months. 

‘This resulted in the company’s Ukrainian subsidiary being forced to shut-in a proportion of its oil and gas production during this period’ explains the company focused on Eastern Europe. 

Serinus Energy and Regal Petroleum did not publish on their website any information about similar confirmations.

In mid-February, JKX resorted to the Energy Charter Treaty to seek compensation from Ukraine for alleged violations that would have hit its bottom line breaching existing treaties. It sought repayment of more than USD 180 million in rental fees that its Ukrainian subsidiary has paid on production of oil and gas in Ukraine since 2011.