Ukrnafta calls on the State Geological Service to extend the licenses immediately, which acting head of the agency Oleg Kyrylyuk announced he would do during the meeting of the parliamentary energy committee last Friday. The company is also looking to the State Geological Service, Ministry of ecology and other government agencies to expedite the issuance of the licenses and other permits to enable the company to restore production at the affected fields.

Yesterday the government officially published the amendments to its resolution #615 of 30.05.2011, which regulates the issuance of licenses for subsoil use. The government removed from the document the provisions that allowed denying the extension of licenses in case the applicant has a tax debt. These provisions were found unlawful and annulled by the court ruling in January 2017.

Ukrnafta views the decision of the Cabinet of Ministers as unequivocally positive, although the delays with taking this decision and then publishing it resulted in stoppage of production of hydrocarbons, loss of output, missed tax revenues and interruption of gas supply to a number of communities in Sumy region. The information about the Cabinet’s decision to make amendments to resolution #615 appeared on the government’s portal as early as June 22, however, they were officially published only on July 19. As the government regulator failed to extend the company’s licenses, Ukranfta was forced to stop operations at Anastasiivske, Artyukhivske, Rybalske and Korzhivske fields on June 27, and at Pivdenno-Panasivske and Zavodivske fields on June 9 and March 31 respectively.

The company believes that the said regulatory changes open the way to extension of all 9 licenses expiring in 2017, restoration of production of oil and gas, as well as to restoration of gas supply to 8 communities in Sumy oblast.

For more information please contact press office: +38 044 239 14 93