Companies of Smart Energy Group transferred 7.3 mln UAH of royalty to budgets of local communities for the first quarter of 2018. In particular, communities of Poltava region received approximately 3 mln UAH and Kharkiv region – 4.3 mln UAH.

In Poltava region, where the Representative Office of Regal Petroleum Corporation Limited operates, local communities received 1.2 mln UAH, regional -1.2 mln UAH, village councils – 610K UAH. In Kharkov region, where PrJSC Ukrgazvydobutok and LLC Prom-Energo Product operate, local communities received 1.7 mln UAH, regional – 1.7 mln UAH, village communities and Merefa town – 860K UAH.

As a reminder, such transfer was due to the decentralization of royalty payment according to the Law of Ukraine No. 1793-VIII (earlier known as Law Draft No 3038, actively supported by oil and gas producing companies. Thus, beginning from January 1st 2018 gas producing companies are to pay 95% of royalty for production of hydrocarbons to the State budget and 5% to the local one. In particular, 2% to the region, 2% to the region and 1% to the local budget depending on location (production) of respective natural resources.

Reference

Smart Energy is a part of Smart-Holding in charge of implementing exploration projects, commercial development of the hydrocarbon deposits and alternative energy initiatives.

Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkov region) and Regal Petroleum, a listed British company having assets in Poltava and Kharkov regions (Prom-Energo Product).