Rental payment of 70% - strengthening of gas dependence on Russia – head of Ukrgasdobycha

​Naftogas will spend tremendous funds for the purchase of imported gas while the reduction of rental payment for Ukrgasdobycha would allow to invest the saved funds into the rise of its own extraction, the head of Ukrgasdobycha, O. Prokhorenko, said.

He admitted that in 2016 the volume of gas extraction will fall by 2.1 bln cubic m.

“If we don’t make any capital investment, don’t drill, don’t hold operations on the intensification of gas extortion, next year the extraction might fall to 12.4 bln cubic m from 14.5 bln cubic in 2015”, he said.

But Naftogas will have to anyway provide these 2.1 bln cubic m.

According to Ukrgasdobycha, if it extracts 2.14 bln cubic m of gas, it costs 4.4 bln grivnas to the Government. If it doesn’t have this volume, Naftogas will purchase it in the market for 12.3 bln grivnas at $250/thousand cubic m, O. Prokhorenko said.