Weekly news digest July 28 – August 03, 2014



The last week Verkhovna Rada voted for amendments to the Tax Code thus increasing the fee for subsoil use for upstream companies. The fee for subsoil use for 1 th.cub.m of gas increased from 28% to 55% of maximum price set by NERC for industrial consumers for gas produced from above 5 km and from 15% to
28% for gas produced from deeper than 5 km. The rate will not change for the companies producing gas for population.



Ukrainian companies
The Cabinet of Ministers dismissed the Deputy Head of Naftogaz Katsuba
Ukrnafta sharply increased its net profit in the first half of the year
Ukrgazvydobuvannya is planning to process 20 thousand tons of give and take raw materials at Condensate Stabilization Technology Workshop Bazilevshchina
Nadra of Ukraine is looking for investors to develop 10 fields
The Head of Naftogaz appointed the former employee of WOG on the position of his Deputy
Cost price of gas production by private companies in Ukraine is $200 per 1 thousand cubic meters – PPC
Foreign companies
Italians can review the schedule of shale exploration in Ukraine
JKX increased its net profit by 13% in the first half of the year
Schlumberger expects investment increase in exploration in the second half of the year
Ukrtatnafta got net profit in amount of 461 million UAH in the first half of 2014
Gas transit through Ukraine can be reduced by 60 BCM
Politics and the world
The Cabinet of Ministers refused to use fixed rates while oil and gas condensate production
The Cabinet of Ministers proposes to halve the rent burden on gas production from new wells for private companies
Rada increased rates for subsoil use while oil production up to 45% and 21% till the end of 2014
Rada increased rates for subsoil use while gas production by the private companies up to 55% and 28% till the end of 2014