naftogaz.com
The contract was concluded for 15 years with the possibility of extension for another 10 years.
First Deputy CEO of Ukraine's largest state-run gas producer JSC UkrGasVydobuvannya, Oleksandr Romanyuk, says the company and Romania-based Expert Petroleum have signed a contract to intensify gas production at depleted fields in Ukraine for a 15-year period.
"The main task of concluding the contract is not to support the main gas production. Although in terms of efficiency and cost optimization, Yes. But we expect to boost the production in the first five years of the guaranteed period. The increase will not be a few percent, but dozens percent," he told an online conference on April 21.
According to Romanyuk, the contract was concluded for 15 years with the possibility of extension for another 10 years. According to the contract, Expert Petroleum will be receiving payments from each cubic meter of gas produced, depending on the field.
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"We shall pay expenses the company will incur and guarantee some profit to encourage the company to invest money in our fields," he said.
According to National Joint-Stock Company Naftogaz of Ukraine, a partnership with Expert Petroleum will provide additional production of at least 300 million cubic meters of gas at 13 small-sized fields in Western Ukraine within five years.
The intensification of operations, the increase in taxes and other budgetary payments on the part of the partnership will allow Ukraine to accumulate more than UAH 4 billion in additional GDP of the country and Lviv region.