2nd Mar 2015 10:12
LONDON (Alliance News) - JKX Oil & Gas PLC on Monday said it has restarted full production at all of its Ukrainian fields following the end of a temporary gas sales restriction put in place in the country.
JKX said it has now received confirmation from the Ukrainian state gas distributor that all of its nominations for March delivery of gas to industrial customers have been accepted.
The company had been forced to shut-in a proportion of its oil and gas production after the Ukrainian government in November issued a decree which required all industrial gas customers in the country to buy the gas solely from state-owned Naftogaz for three months ending February 28.
Last month, JKX said it has started arbitration proceedings against Ukraine under the Energy Charter Treaty, a bilateral investment treaty, to seek compensation for what JKX called Ukraine's violation of the treaty.
JKX also had said it will seek compensation from Ukraine over the country's alleged violation of the treaty, including its failure to treat JKX investments in a "fair and equitable" manner and failing to comply with commitments the country made with regard to JKX's investments in the country.
The company had said it is, in particular, seeking the repayment of more than USD180 million in rental fees paid by its Ukrainian subsidiary on the production of oil and gas in the country since 2011.
Shares in JKX were up 3.5% to 37.38 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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