From Geopolitics to the Wel

During the XIII International Oil and Gas Conference of Newfolk NCC, the Head of the Association focused on global demand for hydrocarbons, the resource agreement with the United States, and the realities of Ukraine’s gas production sector.

“Despite unprecedented losses and more than 120 attacks on gas production and gas infrastructure since the beginning of this year, state-owned and private companies are making every effort to restore facilities and stabilize production,” emphasized Artem Petrenko.

The Executive Director of the Association of Gas Producers of Ukraine also noted that demand for hydrocarbons will not only remain stable, but will also increase over the coming decades. For Ukraine, which possesses significant reserves, the signed resource agreement with the United States is one of the key ways to transform geopolitical support into new wells.

The Ukrainian-American arrangements provide for two mechanisms of cooperation:

Obligation.
If assets fall within the scope of the agreement - in particular, all new special permits issued after May 23, 2025; existing licenses where less than 1% of reserves have been produced over the past 10 years; or licenses where violations of work programs have been identified and not remedied - companies must cooperate with the Investment Fund, the PPP Agency, and the DFC under a specific list of obligations.

Right.
If a special permit does not fall under the mandatory criteria of the agreement, producers may voluntarily cooperate with the Fund to attract investment.

“Clear communication and cooperation among all parties are critically important for the full implementation of projects. A number of important issues are currently in focus, including the right to purchase assets, reference criteria and their application, as well as obligations and liabilities, all of which require final settlement,” said Artem Petrenko.

We sincerely thank Andrii Zakrevskyi, Liubomyr Sahal, and the entire Oil and Gas of Ukraine team for the invitation and, as always, excellent organization!