LONDON - Enwell Energy plc (AIM: ENW), an oil and gas exploration and production group, has announced the reinstatement of suspensions on its MEX-GOL and SV production licenses in Ukraine. The decision came after the Second Appeal Administrative Court in Ukraine overturned an earlier ruling that had temporarily lifted the suspensions.
The State Geologic and Subsoil Survey of Ukraine (SGSS) initially issued 10-year suspension orders on 15 November 2024, effective from 8 October 2024, for the MEX-GOL, SV, and VAS production licenses held by Enwell. The company had successfully obtained interim rulings from the Poltava District Administrative Court to lift these suspensions, allowing operations to continue pending a final decision on the matter.
However, on 22 January 2025, the SGSS’s appeal against the interim rulings for the MEX-GOL and SV licenses was successful, leading to the reactivation of the suspension orders for these particular fields. As a result, Enwell has ceased all field operations, including the shutdown of production operations on the affected licenses.
The appeal regarding the VAS license's interim ruling has not yet been scheduled for a hearing, allowing operations at the VAS field to proceed for the time being.
Enwell Energy is actively continuing its legal challenge against the suspension orders and is seeking advice from external legal and other advisers to mitigate the risks posed by the regulatory actions of the Ukrainian authorities.
This development may affect the company's production output and financial performance, as the suspended licenses were part of its operational portfolio in Ukraine. The situation remains dynamic, with ongoing legal proceedings that could influence future operations and the company's presence in the region.
The information in this article is based on a press release statement from Enwell Energy plc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.