23rd Jul 2015 16:06
LONDON (Alliance News) - JKX Oil & Gas PLC, an exploration and production company, Thursday said the government of Ukraine has been told to limit the collection of rental fees on gas produced by the company's Ukrainian subsidiary, Poltava Petroleum Co.
The limit has been set at a rate of 28%. The rate currently applicable under Ukrainian law is 55%.
The news comes after an international arbitration tribunal on Thursday issued an interim award requiring the government of Ukraine to reduce the limit, according to JKX.
"The interim award, which is binding on Ukraine as a matter of international law, will remain in effect until the final ruling which will be issued following the arbitration hearing which is expected to take place in July next year," JKX said in a statement.
In January, an emergency arbitrator had issued an award ordering Ukraine to cease imposing rental fees in excess of 28% on gas produced by PPC, pending the outcome of the application to a full tribunal for the interim award, according to JKX.
"This earlier emergency award, to which Ukraine did not comply, had been sought under the Energy Charter Treaty and the Stockholm Chamber of Commerce Arbitration Rules prior to the consolidation of the arbitration proceedings," JKX said.
JKX shares closed at 19.60 pence, up 0.5%.
By Samuel Agini; [email protected]; @samuelagini
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