There will be no gas production boom in Ukraine the next 3-4 years – Favorov

Ukrainian gas production now looks like a squeezed lemon. The state did not deal with the issue of developing new fields for a long time, which led to the depletion of existing ones. It will take 3-4 years to recover.

This was part of a panel discussion on the energy security of Ukraine at Kyiv International Economic Forum, said Head of the integrated gas business of NJSC Naftogaz of Ukraine Andrew Favorov.

“For the past 5 years, we have been constantly pushing our fields. Something is even dripping. But 80% is average depletion, and 80% of depleted fields are on the balance of the state-owned company Ukrgazvydobuvannya. And this is 75% of gas production in the country”, he said.

Favorov explained: to get gas, one had to “plant a tree” 5 years ago. But neither the UGV company nor other gas companies had an understandable mechanism for obtaining licenses to grow this “tree”.

“We welcome the Cabinet’s initiative to change this approach. Over the past 12 months, more auctions and deposits have taken place than over the past 5 years. The tree has been planted. But it will take 3-4 years for it to bear fruit. Before that, we must effectively squeeze those “lemons” that we have. But there will be no breakthrough. The next 3-4 years, we will not fundamentally change the situation. The tree should grow”, he said.

He also commented on the statement of Minister Olexiy Orzhel that Ukraine will adopt a new energy strategy.

“The strategy should be economically feasible. We do not need cubic meters. We need a lot of money to get these cubic meters”, he said.

At the same time, Favorov is confident that Ukraine will be able to achieve its energy independence goals.



Tags: The Cabinet of Ministers, gas, Naftogaz, contracts, hydrocarbon production, legislation, The Minystry of Energy and Coal Mining, Top management, Ukrgazvydobuvannya, Orzhel, Favorov

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