Press release

30 Jan 2021 Kyiv, UA

EY advised Geo Alliance Partnership on a production sharing agreement

KYIV, 30 JANUARY 2021. EY acted as advisor to Geo Alliance on a hydrocarbons sharing agreement for the Sofiivska block.

Press contact
Nataliya Letik

EY Ukraine Brand, Marketing and Communications Supervisor

Marketing and Communications Supervising Associate for EY Ukraine. Passionate language learner, figure skating and ballet fan.

EY acted as advisor to GEO ALLIANCE PARTNERSHIP LLC during the preparation and signing of the hydrocarbons sharing agreement for the Sofiivska block.

Geo Alliance group companies won the tender for the right to sign the hydrocarbons production sharing agreement for the Sofiivska block and engaged EY as counsel for the agreement drafting and its signing with the State of Ukraine. The work on project started in August 2019, and on 31 December 2020 the agreement was signed.

EY team participated in drafting of production sharing agreement and advised on tax, customs, currency control and financial aspects of the transaction.

The project team was led by Iryna Kalyta, Associate Partner, Tax & Law, and included Larysa Marchenko, Partner, Strategy and Transactions, Igor Chufarov, Partner, Tax and Law, Sofiia Svystun, Maksym Krymov and Anton Melnyk, Managers, and Olena Mitskan, Сonsultant.

“We are delighted to see the projects come through, it’s a new level for the energy sector for Ukraine. High hopes are placed on production sharing agreements to boost domestic gas production as a pillar supporting energy independence of Ukraine.

This is a largest PSA tender so far, and it is an honor to have acted as a tax advisor on several agreements in this bidding round. We are grateful to our clients for their continued trust in us, and glad that our multidisciplinary expertise and experience in supporting previous production sharing agreements helped bringing these landmark projects to fruition”, — commented Iryna Kalyta, Associate Partner, Tax & Law.

In 2019, tenders for nine production sharing agreements for hydrocarbon production in Ukraine were held. We are pleased to remind that EY also advised Vermilion Energy on PSAs for Balakliivska and Ivanivska blocks, a DTEK Group company on the PSA for the Zinkivska block and Aspect Energy on the PSA for the Varvynska block.

About EY

EY exists to build a better working world, helping to create long term value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. For more information about our organization, please visit ey.com.

About Geo Alliance

The Geo Alliance Group is one of the largest independent producers of gas and gas condensate in Ukraine. Geo Alliance is involved in the geological exploration development and production of natural gas, gas condensate and oil in Ukraine.