18:20 05.08.2024

Court may restore license of Ukrnaftoburinnia for gas production at Sakhalynske field

2 min read
Court may restore license of Ukrnaftoburinnia for gas production at Sakhalynske field

The Sixth Administrative Court of Appeal at a meeting on Tuesday, August 6, will consider the issue of gas production at the Sakhalynske field and the possible renewal of a license of PrJSC Ukrnaftoburinnia (UNB), according to the company's press release on Monday.

"In general, we are talking about half a billion cubic meters of gas per year, and in winter we will need the entire resource: every liter of gasoline or diesel for generators, every cubic meter for heating and electricity production," said Oleh Malchyk, head of Ukrnaftoburinnia, is quoted by the press service.

As reported, on November 28, 2023, the Sixth Administrative Court of Appeal annulled the order of the State Geological Service and revoked license No. 6349 dated July 10, 2019, under which Ukrnaftoburinnia was operating at the Sakhalynske field. The company ceased operations from December 1.

However, as UNB explained, the State Geological Service filed a lawsuit to revoke the current license with a significant violation of the deadlines - the Supreme Court issued a decision on the case back in 2019, and procedurally there was only a year to file an application. However, the court restored the deadline for the State Geological Service to file an application due to the applicant's reference to a letter from the State Bureau of Investigations (SBI).

The State Geological Service explained that they started the trial because of a letter from the State Bureau of Investigations (SBI), but they stated that they did not ask to revoke the UNB license.

According to UNB, as a result of the shutdown of production at the Sakhalynske field, monthly gas losses amount to about 50 million cubic meters and 5,200 tonnes of condensate, and the company's industrial and commercial activities in 2024 could bring the state UAH 10 billion in taxes and dividends.

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