JSC UkrGasVydobuvannya took part in the round table dedicated to the key priorities of mining sector reform

Jun 19, 2018 | Category: Official
JSC UkrGasVydobuvannya took part in the round table dedicated to the key priorities of mining sector reform

Oleh Prokhorenko, Chairman of the Board at PJSC UkrGasVydobuvannya, presented UGV achievements in the field of increasing domestic production, obstacles towards implementing the 20/20 Strategy, and made public proposals on their solution at the round table in the Verkhovna Rada dedicated to the key priorities of mining sector reform.

‘The deficit of new resource base is a key obstacle to increasing UGV production,’ noted Oleh Prokhorenko. PJSC UkrGasVydobuvannya is doing its utmost to increase extraction in the existing deposits, but they are exhausted by 70%. This year we regrettably marked the record number of refusals from Poltava Regional Council to approve special permits, thus threatening potential extraction of UGV in the volume of 1 billion cubic metres. Therefore, I repeat once again that there should be clear KPIs for executives of the state authorities aimed at producing gas that will motivate them to increase their gas production. The relevant ministers, head of the State Geological Service, heads of regional administrations and regional councils, where UGV is involved in the extraction should be these persons. The second biggest obstacle is that the subsoil in the country does not belong to people. It is necessary to make the acquisition of the right of ownership to the land with the right of ownership to the subsoil.’

Among the issues that require immediate actions, Chairman of the Board of UGV noted the following:

Expanding resource base - obtaining new special permits:

  • • 61 refusals to approve the granting of special permits from Poltava Regional Council in 2016-2018 (no approval);
  • • Auctions for the sale of special permits are not held;
  • • The norm that allowed the economic entities with special obligations to receive special permits without auction was abolished (the norm was valid only for a year, the CMU Resolution No. 277 dated 6 April 2016);
  • • No licenses are issued for the shelf (UGV proposes to develop 5 areas in the Black Sea with extractive gas reserves of 80-300 billion m3).

Access to the geological information:

  • • Use of own geological information is over-regulated (purchase and sale aproval, etc.);
  • • Protection of geological information for vacant plots;
  • • The Government does not carry out geologic exploration activities for qualitative preparation of the plots.

Regulatory and licensing procedures:

  • • Implementation of the Law No. 2314-VIII (ЗП 3096д) in the by-laws;
  • • Solution of the EIA issues for ‘through’ special permits;
  • • Speculation regarding the land plot granting conditions;
  • • Charging with special duties.

The event was attended by numerous people’s deputies, government officials, representatives of the diplomatic communities, analytical agencies and the public. Presentation of Oleh Prokhorenko is available on the web site.