JA key parameters

  • Ability to sell gas at the market prices. Since the Ukrainian State control on the Joint Activity ("JA") is limited to its participation of 49.99%, the JA is free to sell its produce on the commercial terms.
  • Access to solid reserve base. The Misen Group led JA has confirmed reserve base of 28.1-34.3 billion cubic meters of natural gas, 5.8-6.8 million barrels (“MMbbls”) of gas condensate and 3.1-4.5 MMbbls of Liquefied Petroleum Gas. Numbers correspond to proven (1P) and proven and probable reserves (2P) assessed via the Competent Persons Report. The Misen Group share of net reserves is 50.01%. 
    Note: The CPR is based on data as of 1 January 2013 and follows the specifications of the Amendment No.5 to the JAA No.3.
  • Technology driven investment program of MUSD 571. Investment program has been planned for 2011-2018 and as of the end of 2017 the total performed investment constituted MUSD 370 (MSEK 3,037). The primary focus of the investment program is development of the complex engineering infrastructure that will sustain continuation of gas production in Ukraine at the current levels.
  • Sustainable cash flow allows implementing planned investment program. As per the Joint Activty Agreememt No.3, participants of the JA have reinvested all proceeds during 2011-2017.
  • Access to the western capital markets and modern technology. The Misen Group led JA engages a number of western and domestic contractors and suppliers to perform works as agreed in the JAA No.3. The largest share of investment during 2011-2017 went to the suppliers of equipment from the US, Canada and Western Europe.