The Court of Appeal overturned decision of the first instance court to invalidate special permit for production of hydrocarbons of LLC Arkona Gas-Energy.
Thus, on September 29, the Sixth Administrative Court of Appeal held a hearing on the appeal of LLC Arkona Gas-Energy (hereinafter Arkona), which is part of Smart Energy Group of Companies and is a Ukrainian asset of British Public Company Enwell Energy. The company appealed to the Court of Appeal to overturn July decision of Kyiv District Administrative Court on a lawsuit filed by PJSC Ukrnafta to invalidate Arkona's special permit for hydrocarbon production at Svystunkivsko-Chervonolutske field.
This decision of the Court of Appeal confirms legitimacy of Arkona and its new owner British Enwell Energy’s standpoint, and also provides an opportunity to revive Svystunkivsko-Chervonolutske field, which has not been producing hydrocarbons for over ten years.
"We are rooting for decision of the Sixth Court of Appeal. Not only it is an opportunity for us to continue preparing for drilling the first well in a quarter of a century but also a green light for foreign investors to invest in Ukrainian economy and a tendency to reduce investment risks here", - said Sergey Glazunov, CEO of Smart Group and Enwell Energy company.
"The Court of Appeal upheld Arkona's appeal, overturned decision of the first instance court and denied Ukrnafta's lawsuit. We consider such decision of the Court of Appeal to be quite legal and logical, because in the end of 2019 the Supreme Court in another case has already established that the permit was issued to Arkona in a legal way. That is, the court of the first instance in making the contested decision in this case actually reviewed decision of the Supreme Court, which violated the principle of legal certainty and binding nature of the court decision, regulated by both national and international laws. Also, the court of the first instance committed a number of procedural violations, which, given today's decision, did not go unnoticed by the Court of Appeal, "- Gleb Byaliy, a partner at law firm Asters, which represented Arkona in this case.
To be reminded that British Public Company Enwell Energy received a permit to produce hydrocarbons at Svystunkivsko-Chervonolutske field via acquisition of LLC Arkona Gas-Energy in March this year. By the end of 2020, the company expects to start drilling the first well at the field.
Reference
Smart Energy is a part of Smart-Holding and is in charge of implementing exploration projects, commercial development of the hydrocarbon deposits.
Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkiv region) and Enwell Energy, a listed British company having assets in Poltava (the Representative Office of Regal Petroleum Corporation Limited and Arkona Gas-Energy LLC) and Kharkiv regions (Prom-Energo Product).
