CMS in Kyiv has successfully advised Shell on the first production sharing agreement (PSA) for unconventional gas in Ukraine, which was signed on the sidelines of the World Economic Forum on Thursday, 24 January, between Shell, Nadra Yuzivska LLC and the Government of Ukraine.
Shell and its partner will explore and appraise hydrocarbon plays they have identified and specifically the tight gas potential of the Yuzivska area. The Yuzivska area covers approximately 7,800 square kilometres in the Kharkiv and Donetsk regions of Ukraine.
CMS provided regulatory, corporate and real estate advice to Shell and supported the client's team in drafting and negotiating the PSA with the Government of Ukraine.
The CMS team was led by Counsel Vitaliy Radchenko and included a number of lawyers from other practice groups, under the supervision of Daniel Bilak, managing partner of the Kyiv office.
Vitaliy Radchenko commented, "The Yuzivska PSA project was one of the top priority projects for our office during the last few months. It underlines the strength of our energy expertise and the ability of our lawyers to integrate seamlessly with the legal and negotiations teams of Shell, our long-standing client in Ukraine. This allowed all of us to negotiate and deliver the project within a very tight time frame."