ALERT
DiXi Group calls on the government and extractive companies to publish the essential terms and conditions of the signed PSAs, as well as information about paid bonuse
“#DiscloseTheDeal in 2021” is the motto of this year’s PWYP global campaign, dedicated to the entry into force of the relevant requirements of the Extractive Industries Transparency Initiative (EITI) Standard on January 1, 2021.
What it means in practice?
Starting from January 1, 2021, countries implementing the EITI are required to disclose the full text of any agreements (contracts, concessions, production sharing agreements or other agreements concluded on behalf of the government), which contain the terms and conditions of the production of oil, gas and other minerals.
On December 31, 2020, Ukraine concluded 7 production sharing agreements (PSAs) for the Sofiyivska, Uhnivska, Balakliiska, Ivanivska, Zinkivska, Buzivska and Berestianska hydrocarbon fields, and on January 14, 2021 – another PSA for the Varvynska field. There are also a number of agreements concluded in previous years, e.g. for the Yuzivska field.
According to the above-mentioned EITI Standard, these agreements should be disclosed – as well as the PSAs previously concluded. However, these requirements have not been incorporated into Ukrainian legislation yet, this might be the task of the draft law #3790, which is supposed to ensure that Ukraine fully complies with the EITI requirements.
However, there is some information about PSAs that needs to be disclosed now. The Law of Ukraine “On Ensuring Transparency in Extractive Industries” requires disclosing the essential terms and conditions of extractive agreements (together with the relevant extracts from such agreements), in particular…
