20 November, 2017, 16:15

Ukrnafta has filed the applications and supporting documentation with the State Geological Service (SGS) to extend 14 production licenses for Rosilnyanske, Turutynske, Mykolaivske, Lukvynske, Dovbushansko-Bystrytske, Pasichnyanske, Andriyashivske, Oriv-Ulychnyanske, Dolynske, Strutynske, Spaske, Sukhodolivske, Prylutske and Kachanivske fields. The company is planning to submit shortly the applications to extend 13 more licenses.

Ukrnafta will see 27 of its production licenses expire in 2018, which account for 45% of annual production of liquids and 25% of annual gas production. Timely extension of the licenses is essential for Ukrnafta and will have significant impact on the company’s operational and financial performance, its investment programme, employment and budget revenues. The company projects that next year the central and local budgets will collect circa UAH 3 bln in rent revenues alone from production at these 27 fields.

Of the 27 fields where licenses expire next year 7 are located in Ivano-Frankivsk oblast, 7 - in Chernihiv, 5 - in Sumy, 5 - in Poltava and 3 - in Lviv oblast. The annual production at these fields totals over 710 ktonnes of oil and condensate and 360 mln m3 of gas.