Yesterday night PJSC Ukrnafta had to stop production at Pivdenno-Panasivske field following the unlawful refusal by the State Geological Service of Ukraine to extend the license, which expired on 9 June 2017.
Following the involuntary stoppage of production, the residents of villages Stolyarove and Yalovy Okip in Lypovodolynsky raion and of villages Pogozha Krynytsya and Zaruddya in Romensky raion of Sumy oblast were left without gas supply. Before 9 June 2017 gas was supplied through Pivdenna-Panasivka gas distribution station at 4 600 m3 per day.
In addition, on 27 June 2017, due to the regulator’s refusal to extend 4 other licenses in the Sumy region the company will be required to stop production at Anastasiivske, Rybalske, Artyukhivske and Korzhivske fields. This will interrupt gas supply to the villages of Mali Bubny, Batsmany, Gryshyno and Loknya in Romensky raion. According to Sumy oblast state administration, 8 locales with over 50 000 residents will be left without centralized gas supply due to non-extension of the licenses. There is no alternative way to supply gas to these communities.
The management of Ukrnafta has called on the President of Ukraine to implement temporary emergency measures enabling Ukrnafta’s production units to continue production at the said fields until an alternative solution is found to supply gas to the affected communities or until the matter of license extension has been resolved.
Ukrnafta has consistently raised the issue of unlawful refusals by the State Geological Service to extend 9 licenses expiring in 2017. According to the regulator, the refusal to extend the licenses is justified on the company’s tax debt as per paragraph 15 of the Rules for License Issuance. However, the relevant provisions of these rules were found unlawful and annulled by the decision of the District Administrative Court of Kyiv, which entered into force on 17 January 2017.
On 3 May and 2 June 2017, Ukrnafta’s production unit Oktyrkanaftogas has informed the management of PJSC Sumygas, head of the Sumy Oblast State Administration, heads of the raion state administrations and heads of village councils about the risk of interruption of gas supply to 8 villages in the Sumy region due to non-extension of the licenses and involuntary stoppage of production.
Note to editors:
Ukrnafta is the largest oil company in Ukraine. The company’s share in the nation’s oil and gas condensate production in 2016 is 68%, while the share in total gas production is 6,6%. Ukrnafta’s drilling divisions cumulatively own 46 drilling rigs, 1946 oil and 172 gas wells, and 537 filling stations that cover every region of Ukraine. The company is 50%+1 share owned by Naftogaz of Ukraine, a fully state-owned holding company.
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