Cabinet to revoke PSA with Vanco

Yesterday the Vice Prime Minister Alexander Turchinov said the Cabinet decided to revoke the Production Sharing Agreement (PSA) with Vanco International for the development of the Prykerchenska oil and gas field on the Black Sea shelf, on the grounds that it was “a corrupt deal”. On April 25 the Ministry of Environmental Protection terminated Vanco’s license. On May 16, Vanco’s Senior Vice-President Jeffrey Mitchell disclosed their financial partners (DTEK, Shadowlight Investments and Integrum Technologies) and called for renewed negotiations with the Tymoshenko government. He also said that Vanco would seek international arbitration if an agreement is not reached.