Smart Energy Group’s Regal Petroleum suspends gas production due to sanctions

28 January 19:14

The representative office of Regal Petroleum Corporation Limited, owned by Enwell Energy and part of the Smart Energy Group, has started work to shut down hydrocarbon production at the Mekhedivsko-Golotovschynske and Svyrydivske fields in Poltava region. This was reported by the industry publication ExPro with reference to the press service of Smart Energy, Komersant ukrainskyi reports.

According to ExPro, the production suspension is related to the decision of the Second Administrative Court of Appeal of Ukraine, which overturned the previous decision of the Poltava District Administrative Court, which in turn canceled the production suspension at the Mekhedivsko-Golotovschynske and Svyrydivske fields in Poltava region.

“Stopping production will lead to the loss of 390 million cubic meters of remaining natural gas reserves, a volume that could contribute to the country’s energy stability, and UAH 2.7 billion in lost taxes, money that could be used for important social needs,” Smart Energy Group said in a statement.

What is known about the court proceedings

According to ExPro, on November 15, 2024, the State Service of Geology and Subsoil of Ukraine suspended the licenses for hydrocarbon production at the Mekhedivsko-Golotovschynske, Svyrydivske and Vasyschyvske fields due to the National Security and Defense Council’s sanctions against the company’s owners.

Enwell Energy initiated legal proceedings in the Poltava District Administrative Court, challenging the decision to suspend the licenses. on November 25, 2024, the company received a positive decision from the Poltava court, which canceled the orders of the State Service of Geology and Subsoil. The company was able to resume natural gas production.

At the same time, the State Service of Geology and Subsoil filed an appeal against the Poltava court’s decision, which the court of appeal upheld on January 22.

BusinessCensor reminds that in April-May 2023, the State Service of Geology and Subsoil of Ukraine already suspended three special permits of Smart Energy companies due to sanctions against pro-Russian ex-MP Vadym Novynskyi, whom the SBU considers the company’s real owner.

In early December 2022, President Volodymyr Zelenskyy enacted a decision of the National Security and Defense Council that imposed 12 types of sanctions on former MP Vadym Novynskyi, including asset freezes and the revocation or suspension of special permits for subsoil use.

Василевич Сергій
Editor