PJSC Ukrnafta confirms that supplies of natural gas have been halted to up to 1100 entities in the Dnipropetrovsk region, due to the suspension of three subsoil use licenses (Golubovskoye, Yurievskoe, & Lopushnyanskoe) by order #16 from GosGeoNedra. These entities include homes, 4 schools, 3 kindergartens and a hospital affecting a total of 3,450 people.

PJSC Ukrnafta is legally compelled to cease operations on the affected licences and it would be a criminal act to resume production without official permission.

GosGeoNedra made the decision to suspend these licenses without any consultation with PJSC Ukrnafta. Despite Ukrnafta’s strong protests in an effort to mitigate this unfortunate consequence, including legal action, Ukrnafta’s efforts were ineffective.  Furthermore, Ukrnafta’s efforts to stop the license suspension is fully supported by the Trade Union because personnel may be at risk to lose their livelihood.

Currently Ukrnafta is looking at alternative options of providing gas to the affected communities.  Options presently being evaluated include installation of a temporary pipeline that taps into our existing gas pipeline and sourcing gas from elsewhere. Ukrnafta is working in cooperation with Naftogaz in this regard.

Ukrnafta is ready to provide all the necessary support, including the use of whatever existing equipment, facilities, and personnel we have, to resolve this unfortunate situation as soon as possible.

Also PJSC Ukrnafta is working actively with Government authorities in order to reverse the decision of the licencing authority as quickly as possible so that normal supply can be resumed to the affected areas.

It is understood that more licences may be at risk and PJSC Ukrnafta has raised this with the highest government authorities in advance in order to ensure that there is not disruption to other supplies in the future.