Vanco Loses License to Explore Offshore Hydrocarbon Deposits in Ukraine

Ukraine’s Ministry of Environmental Protection terminated Vanco Prykerchenska’s (a subsidiary of Vanco Energy U.S.) license to develop the Prykerchenske oil and gas field on the Black Sea shelf on Friday. Vanco Energy has already announced that it will appeal for international arbitration. The Ukrainian Government signed a Production Sharing Agreement (PSA) for the Prykerchenska oil and gas with another Vanco Energy affiliate, Vanco International Ltd, in October 2007, and the rights were later transmitted to Vanco Prykerchenska. On April 11, Ukrainian Prime Minister Yulia Tymoshenko asked parliament and the Cabinet of Ministers to revise the agreement, which, according to her, was not in the best interest of the country.