The Sixth Administrative Court of Appeal on Tuesday allowed PrJSC Ukrnaftoburinnia to resume production at the Sakhalynske field, announced the head of the Naftogaz Group, Oleksiy Chernyshov.

"Ukrnaftoburinnia is finally allowed to resume gas production at the Sakhalynske field! The decision was just made by the Sixth Administrative Court of Appeal," he wrote on his Facebook page.

"We expect the restoration of production and additional gas volumes, which are so necessary for Ukraine before the start of the most challenging heating season," added the head of Naftogaz.

Earlier, the Sixth Administrative Court of Appeal on November 28, 2023, annulled the order of the State Service of Geology and Subsoil and canceled license No. 6349 from July 10, 2019, under which Ukrnaftoburinnia was engaged in gas and condensate production at the Sakhalynske field. The company ceased its operation on December 1.

However, as explained by Ukrnaftoburinnia, the State Service of Geology and Subsoil appealed to the court to annul the valid license significantly exceeding the time limits – the Supreme Court issued a ruling on the case back in 2019, and procedurally, there was only a year to submit the application. However, the court restored the time limit for the State Service of Geology and Subsoil due to a reference by the applicant to a letter from the State Bureau of Investigations (SBI).

The State Service of Geology and Subsoil said that they initiated the legal process due to a letter from the SBI, but the SBI stated that they did not request the annulment of Ukrnaftoburinnia's license.

According to Ukrnaftoburinnia, the shutdown of production at the Sakhalin field results in monthly gas losses of about 50 million cubic meters and 5,200 tonnes of condensate. The company's industrial and commercial activities in 2024 could have generated UAH 10 billion in taxes and dividends for the state.