DTEK Oil & Gas plans at the first stage to invest UAH 1.2 billion in work on Zinkovska area, a production sharing agreement (PSA) for which was signed on December 31 last year.

"The company has already taken the first steps to implement the terms of the agreement: it registered a representative office, began processing the collected information on protected areas on the territory of the deposit, and also began office work," the company said in a press release.

At the same time, the company said there are a number of potential risks that in the future may affect the timely fulfillment of preconditions. In particular, legislative issues related to taxation, regulations and powers of the authorized state body remain unresolved.

"At this stage, there are a number of problematic moments. Already at this stage, the company sees certain risks that may affect the implementation of PSA projects. We hope to build a constructive dialogue to eliminate these risks," Executive Director of DTEK Oil & Gas Natalia Hrebeniuk said.

As reported, in 2020, DTEK Oil & Gas increased natural gas production by 10.8% compared to 2019, to 1.84 billion cubic meters. In 2021, the company plans to increase gas production to 2 billion cubic meters.