Ukraine simplifies oil & gas exploration and production procedures

Ukraine’s parliament approved on March 1 a law that
cancels many bureaucratic procedures for the companies involved in the
exploration and development of oil and natural gas deposits. As the bill’s
initiators explained, the old bureaucratic system of allowances for land plots
under oil & gas wells requires the involvement of 16 different state bodies
and can take four years, on average. The bill simplifies the land allowance
procedures, as well as simplifies procedures for the construction of oil and
gas production and transit infrastructure. It also cancels some overlap in
permitting from various regulatory bodies and simplifies the renewal of
permits. It also cancels the state monopoly on evaluating hydrocarbon
resources.

Alexander Paraschiy: The law
will simplify and reduce the expenses of implementing hydrocarbon exploration
and development projects in Ukraine, and will likely stimulate natural gas
production in the country. It is beneficial for oil and gas companies that are
active in Ukraine, including the oil and gas subsidiary of DTEK, JKX Oil &
Gas (JKX LN) and Regal Petroleum (RPT LN).