Government supports streamlining of licensing procedures in gas production and reducing of rental rates to 12% for drilling new wells as incentive for industry development, assures Prime Minister23.11.2017 21:40 | Fin.Org.UA / Ukrainian Government
The Cabinet of Ministers of Ukraine supports a policy of simplifying licensing procedures, primarily, in gas production, as well as proposals to reduce rental rates to 12% when drilling new wells, as an incentive for sector development and reaching sufficient volumes of gas extraction, therefore the Government expresses commitment by the end of year together with parliamentarians and experts to draft a package of necessary solutions along such directions. Prime Minister of Ukraine Volodymyr Groysman announced during a meeting on the implementation of the Concept for the development of Ukraine"s gas industry. The Head of Government chaired the meeting in Poltava in the framework of his working trip to the region.
Volodymyr Groysman focused attention on the fact that gas production industry has been affected by evident change: state-owned companies and private structures working in the industry demonstrate boost in output, renewal of fixed assets, and the introduction of technologies. Whilst, officials engaged in procedures of licensing and granting of permits – both at the central level and at the level of local authorities – are often hampering progress.
“All those who create barriers to the policy of energy independence will be declared enemies of the State. I will not tolerate that. It is crucial to provide equal conditions, permits when complying with existing requirements,” urged Volodymyr Groysman, “And by the end of the year, we have to adopt concrete decisions – to streamline procedures (of licensing), so that we move towards energy independence, as well as decisions in terms of new wells. Here we must introduce a reduction in rental payments. This can be a factor for increasing investment flows (in the development of extraction)."
On the outcomes of the meeting, the parties agreed to continue joint work in elaboration of decisions on liberalization of working conditions in gas production aimed to boost extraction and to ensure the development of linked industries – first of all, crude oil production.
The Head of Government stressed that energy independence is a matter of economic growth and security of the State. “We have everything necessary, there is a huge storage of resources to ensure energy efficiency,” accentuated Volodymyr Groysman, “What is essential?” Two things: investment and smart regulation. Currently we extract 15 billion cubic meters, but we can produce 20. We will boost production, and people will see the price of fuel is under control".