Ukrkarpatoil has resumed production from the Bytkiv-Babchenske oil field, following the receipt of the relevant documents from the State Service of Mining Supervision and Industrial Safety of Ukraine. PJSC Ukrnafta is the founder of this joint venture and as of today owns 100% share in the capital of JV Ukrkarpatoil Ltd.
In the near future, the specialists of Ukrkarpatoil and Ukrnafta will perform technical evaluation of the wells after extended suspension of production and will be able to estimate the volumes of production. Based on 2015 figures, the resumption of production from this oil field could enable the company to produce 39 ktonnes of oil and 22 mln m3 of natural gas by the end of this year. The government revenues from the rent tax are estimated in the range of UAH 160 mln.
According to previous reports, production at the Bytkiv-Babchenske field was stopped in July 2015, and in May 2016 Ukrnafta’s another JV Kashtan Petroleum Ltd was forced to suspend operations at the Lelyaki field, following the refusal by the State Service for Geology and Natural Resources (Derzhgeonadra) to renew the licenses. As a result, in 2016 alone production of over 75 ktonnes of oil was lost along with 31 million m3 of gas. At the same time, the government missed approximately UAH 320 million in revenues from the rent tax, besides the profit tax and VAT.
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