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BLACK SEA OIL AND GAS

October 2019   |   Black Sea region

``Developing the domestic gas production is a priority for the Ukrainian government`` - Roman Opimakh, Executive Director of Association of gas producers of Ukraine

Posted by GBC on 23-07-2018
Roman Opimakh will be speaking in more details about investment opportunities and recent development in the oil & gas industry of Ukraine on 23 of Oct.

What is your general view of investment opportunities in the Ukrainian oil and gas sector? What projects would you prioritize?

Ukraine has rich natural gas production potential. Apart from meeting the domestic demand and becoming energy self-sufficient, Ukraine can become an exporter of natural gas to Europe in the future.

According to the globally renowned BP Statistical Review of World Energy 2018, the proven natural gas reserves in Ukraine are estimated at 1.1 trillion cubic meters, with an annual production of just under 2%. At this rate, the reserves can last 54 years while the average value in Europe is 12 years.

Developing the domestic gas production is a priority for the Ukrainian government. Significant reforms in the energy sector have been recently implemented, which, according to international industry experts, has made the industry a lot more attractive for investment.

The first important step has been the introduction of incentive-based taxes for drilling new gas wells, with the government committed to a stabilisation clause.

Deregulating gas production was the next step. The law that was passed in March of 2018 brought Ukraine closer to the best international standards of gas production licensing.

These changes together with a large consumer market of 32 billion cubic meters and attractive domestic prices make the Ukrainian upstream one of the right places for international capital.

What are the key challenges and issues in the development of the industry?

The Ukrainian government has begun preparations for international oil and gas auctions. This is a difficult task that requires painstaking work and compliance with international standards. Assuring fair access to geological information is an integral element of that task. We are certain that the auctions will drive up the interest in the industry and invite foreign investors to participate.

Strategic goals and business objectives?

The Ukrainian government has begun preparations for international oil and gas auctions. This is a difficult task that requires painstaking work and compliance with international standards. Assuring fair access to geological information is an integral element of that task. We are certain that the auctions will drive up the interest in the industry and invite foreign investors to participate.

The AGPU was founded in 2015. It was actively involved in significant reforms that promote incremental gas production and contribute to the development of the industry. AGPU is Industry Partner of the Black Sea Oil & Gas conference 2018.

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