The first quarter brought the real trials for oil and gas companies. Hopes of private producers on tax reduction since 2015 vanished, it became clear that there will be no investment, and the operations will have to be curtailed. The largest gas producing company Ukrgazdobycha decreased production significantly. In addition to that 70% increase in rent since April will complicate the company’s operations even further. Despite the overall unfavorable situation in the industry, private companies managed to keep the production volumes at the same level due to several successful projects of private companies.
Total volume of gas production in the first quarter 2015 in Ukraine amounted to 4,918 MMCM, which is even somewhat more – by 35 MMCM (0.7%) compared to last year. Oil and gas condensate production amounted to 639 thousand tons, which is 62 thousand tons (8%) less compared to last year.
OIL AND GAS OVERVIEW FOR MARCH 2015