Naftogaz continues to challenge the decision of the State Service for Geology and Subsoil on the right to use the Budyschansko-Chutovska field

Naftogaz reported that they continue to defend their rights due to the deprivation of special permits for the use of subsoil of the Budyschansko-Chutovska field, which the State Service for Geology and Subsoil sold today at an open auction, as well as two other sites – Obolonsky and Pisarevsky.

The company believes that in 2017, the State Service for Geology and Subsoil unreasonably issued an order that served as the basis for canceling the special permits issued to it for these fields.

“For five years, from the end of 2011, Naftogaz has invested almost UAH 1 billion in the development of these fields, of which more than UAH 750 million – in Budyschansko-Chutovske field. In particular, at the Budyschansko-Chutovska field, Naftogaz completed a complex of 3D seismic, gravimetric, magnetometric, geochemical studies, carried out a comprehensive reprocessing and reinterpretation of all available materials, drilled three productive wells, which discovered three fields. The company has created complex digital hydrodynamic models of discovered fields and received confirmation of the assessment of reserves of discovered fields using the SPE-PRMS system,” the statement says.

On March 13, 2017, the State Service for Geology and Subsoil issued order No.124 on the suspension of the special permits issued to Naftogaz for the use of subsoil for these fields. The reason for this was the corresponding decision of the Poltava Regional Council, "which does not contain any justifications and supporting documents, but is based on biased appeals of individual deputies."

“According to Naftogaz, the decision of the State Service for Geology and Subsoil to suspend the company's special permits is illegal. Now Naftogaz continues to challenge it in court,” the company said.

As a reminder, the Budyschansko-Chutovska field was sold for UAH 650.5 million following the auction results. The winner was NAFTOGAZGEOROZVIDKA (DTEK group of companies).

Tags: The Cabinet of Ministers, gas, DTEK, Naftogaz, contracts, Kobolyev, hydrocarbon production, court, legislation, energy market, gas production, oil production, drilling, Public Service of Geology and Subsoil of Ukraine, The Ministry of Economy, Opimakh, Gas market, price, agreement, gas supplies, volumes, petroleum products, well, field, auctions, infrastructure, energy sector, natural gas, oil companies, The Ministry of Energy, economy, gas production, gas transmission system, oil market

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