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ASPECT ENERGY AND SIGMABLEYZER (USA) SIGN
HISTORIC PRODUCTION SHARING AGREEMENT (PSA) WITH
THE GOVERNMENT OF UKRAINE FOR OIL AND GAS EXPLORATION
U.S.-Ukraine Business Council (USUBC)
Washington, D.C., Thursday, January 14, 2021
WASHINGTON, D.C. - Aspect Energy, Denver, Colorado, and Houston, Texas and SigmaBleyzer, Houston, Texas have signed a historic Production Sharing Agreement (PSA) with the Government of Ukraine for oil and gas production.
The agreement was signed on January 13, 2021 in Kyiv by Ukrainian Energy, L.L.C. (Aspect Energy and SigmaBleyzer) and Ukraine's Deputy Energy Minister Yuriy Boyko. The 50 year PSA agreement is for the Varvynska Block in Eastern Ukraine. The announcement was made today by the U.S.-Ukraine Business Council (USUBC) in Washington, D.C.
"I am pleased to see the successful conclusion of the long effort on the part of Aspect and SigmaBleyzer and the Ukrainian government to develop and agree this Production Sharing Agreement. We are looking forward to working with the State of Ukraine to help increase hydrocarbon production in the country and achieve energy independence for Ukraine," said Michael Bleyzer, President and CEO, SigmaBleyzer.
SigmaBleyzer is a long-time member of the U.S.-Ukraine Business Council, www.USUBC.org.
This is the first investment by U.S. companies in a Ukrainian PSA since 2014 and is a historic breakthrough for international private investors in energy development in Ukraine. The new PSA program was started by the government of Ukraine in late 2018.
An original group of international and domestic investors were approved to enter contract negotiations in May of 2019. The negotiation process by the government of Ukraine took over nineteen months. The government had announced in May of 2019 the negotiation process would take six months.
SigmaBleyzer first starting working on the prospect of becoming a private international investor in energy production in Ukraine three and one-half years ago. The business community hopes the PSA signings in January of 2021 will be a significant breakthrough for private sector investment in Ukraine's energy sector and will open the door for more private international investment.
Ukraine will never achieve a high level of energy independence through increased local production without doing more to open their energy sector to private investors and decrease the almost total control held in the past by government corporations.
"The U.S.-Ukraine Business Council (USUBC) has worked for several years for the implementation of a new successful Production Sharing Program (PSA) in Ukraine. Several USUBC members have been involved. There have been many ups and downs, starts and stops, roadblocks, and other obstacles from government officials and those who have monopoly interests. We are very pleased a breakthrough has finally been made.
"The major investment by two U.S. companies, Aspect Energy and SigmaBleyzer, will be a strong and positive signal to the international business community. There is still considerable work to do to make sure the new agreements move forward rapidly, that the huge investments are actually made, exploration and drilling starts and finally new and enlarged energy production in Ukraine is achieved," said Morgan Williams, President and CEO, U.S.-Ukraine Business Council (USUBC) in Washington.
Information about Aspect Energy and SigmaBleyzer -
Aspect Energy is an independent exploration and energy investment company with offices in Houston, Texas, Denver, Colorado, and Budapest, Hungary. Aspect Energy engages in exploration, production, investment, and development activities in North America and Europe, www.AspectEnergy.com.
SigmaBleyzer is a Houston, Texas, based private equity firm and is one of the most experienced investors in Ukraine. Over the past 25 years, SigmaBleyzer has raised and invested approximately USD one billion in over 100 private companies in a variety of industry sectors and has implemented more than 90 exits, www.SigmaBleyzer.com. SigmaBleyzer is a long-time member of the U.S.-Ukraine Business Council (USUBC), www.USUBC.org.