The Pechersky District Court in Kiev has endorsed a settlement between Ukraine and Vanco, the license holder of the Prikerchensky offshore area, the UNIAN agency reported on Friday.
The Arbitration Institute of the Stockholm Chamber of Commerce approved the settlement in December 2012.
On October 19, 2007, Vanco International, a subsidiary of US-based Vanco Energy Company, signed a 30-year production sharing agreement (PSA) with Viktor Yanukovych's government with regard to the Prikerchensky license area in the Black Sea.
Vanco International then transferred the license to its subsidiary Vanco Prykerchenska Ltd., which started hydrocarbon development in the area in 2007.
When Yulia Tymoshenko took over as prime minister, her government considered the transfer of the license a violation of the contract terms and revoked the license. The PSA was also terminated.
Vanсo sued Ukraine in the Stockholm arbitration court. The next Ukrainian government, led by Mykola Azarov, decided to resume cooperation with Vanco and drafted an amicable settlement. Azarov also canceled the previous government's decision to terminate the PSA.
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