Ukrgazvydobuvannia expects gas production in 2015 to fall by 3%
PJSC Ukrgazvydobuvannia, a subsidiary of NJSC Naftogaz Ukrainy, expects natural gas production in 2015 to drop by 3%, or approximately 400 million cubic meters, chief engineer of the company Oleksiy Nesterenko said during parliamentary hearings this week.
He told Interfax-Ukraine that, according to the company's plan, production in the current year will reach about 14.7 billion cubic meters against 15.113 billion cubic meters in 2014, and 15.11 billion cubic meters in 2013.
Nesterenko said that if in the past year Ukrgazvydobuvannia managed to prevent a fall production at five fields in the Anti-Terrorist Operation zone, over which it lost control, then this year given the higher fiscal requirements, problems with the issuance of special permits for exploration and difficulties with land allocation, it is not possible to achieve the same result.
He said that 15-18 million cubic meters of gas was produced from these deposits each month.
Nesterenko stressed that, taking into account insufficient financing and problems with special permits, the growth of the company's reserves last year was three-fold lower than production. According to him, to achieve an annual increase of reserves at 18-20 billion cubic meters, the company needs to double exploration drilling, and this requires an investment component in the price, as well as receiving one and a half times more special permits.
