10th Oct 2025 10:24
(Alliance News) - Enwell Energy PLC on Friday said its production in Ukraine remained halted during the third quarter of 2025 due to the suspension of three key gas and condensate field licences, while the company continues to pursue legal action against the Ukrainian authorities.
The Ukraine-focused oil and gas exploration and production company said operations at its Mekhediviska-Golotvshinska, Svyrydivske, and Vasyschevskoye fields remained suspended during the quarter, resulting in no production from these assets.
Chief Executive Officer Oleksiy Zayets described the situation as "very challenging and problematic", saying the company's priority was to find a resolution with the Ukrainian government.
"The continuing suspensions of our MEX-GOL, SV and VAS licences remain a very challenging and problematic situation for the group," Zayets said.
"However, the limited progress towards a resolution left us little alternative than to seek to protect our business and assets through legal proceedings."
Enwell said the suspensions stem from an October 2024 presidential decree imposing sanctions on several individuals who are trustees of Cypriot trusts holding a major indirect stake in the company.
Under Ukrainian law, the country's State Geologic & Subsoil Survey recognises these trustees as the ultimate beneficial owners of Enwell's local subsidiaries that hold the hydrocarbon licences, the company said.
As a result, the regulator issued 10-year suspension orders on November 15, 2024, affecting the MEX-GOL, SV, and VAS licences.
Enwell initially obtained interim court rulings lifting the suspensions, but these were overturned on appeal in early 2025, forcing the company to halt all field operations once again.
In response, Enwell launched arbitration proceedings against Ukraine under the bilateral investment treaty between the UK and Ukraine.
The case, registered with the International Centre for Settlement of Investment Disputes, seeks monetary damages and the reinstatement of the suspended licences.
Meanwhile, development planning continues at the company's Svystunivsko-Chervonolutskyi exploration licence, where Enwell is assessing options for new gas processing facilities and potential connections to existing infrastructure.
The company said it remains cautious in its operations given the "very challenging" environment in Ukraine, prioritising the safety of personnel and contractors.
Shares in Enwell Energy were up 1.8% at 18.33 pence each in London on Friday morning.
By Eva Castanedo, Alliance News reporter
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