Based on operational information, production in Ukraine in 2017 totaled to 20.5 bcm, which is 2.4% more than production in 2016. The petroleum industry has paid a total of 74.6 billion UAH of taxes, which is almost 10% of the State Budget revenues.

The biggest taxpayer of the industry is the state-owned Ukrgasvydobuvannya – its share is 50.5 billion UAH. Another member-companies of the Association have all made it to the list of the top-100 biggest taxpayers in Ukraine.

«A detailed analysis of gas production indicates two trends. Firstly, in the recent years Ukrgasvydobuvannya has show substantial growth of production at 4.4% and has reached a 25-year high level of production of 15.25 bcm. Secondly, unfortunately, the rest of the market was not able to improve their previous production achievements. Thus, the independent producers have extracted 4.2 bcm of natural gas, 0.4% less than they did in 2016. As the Association has forecast in the beginning of 2017, the private sector has entered the stagnation phase», – noted the executive director of the Association, Roman Opimakh.

At the same time, several important initiatives, with which the industry has entered the year of 2018 and which should revive the industry, must be highlighted. We are talking about implementation of the stimulating taxation of 12% and 6% depending on the depth of the well, and the state-backed stabilization clause for 5 years. According to the international experts, Ukraine currently hold the most attractive position among the European gas producing countries in terms of investments in production.

Additionally, starting January 1, transfer of 5% of royalty payments to the local communities, which should motivate the locals to hold a constructive dialog with the industry.

Among another important changes, approval of the new Rules of development of the oil and gas fields should be noted, as well as the cancelation of the burdening requirement to reassess the reserves every 5 years.

«We are expecting 2018 to become the determinant year, which will lay the foundation for a new positive trend in the production growth dynamics. Among the important reforms that the industry needs, the deregulation of the permitting system should be noted. Passing bill 3096-d in the second reading should significantly simplify the procedure of entering the oil and gas fields in production, and speed up the allotment of land for drilling. At the same time, the industry is expecting transparent and open auctions for new fields, opening of the geological information, and opening the databases, as well as modernization of the Subsoil Code with the European standards», – stressed out the Chairman of the Board of the Association, Daniel Maydanik.