REUTERS
The Ukrainian Ministry of Energy and Coal plans to set up a commission that will be tasked with evaluation and improvement of the efficiency of oil production, as well as operations of underground gas storage facilities (UGSFs).
"Special advisory body will be created in the Coal Ministry – the Central Commission on the development of gas, gas condensate, oil fields and UGSFs operations," the ministry's press service reported.
According to the report, the Commission will focus on assessing in an independent and professional manner the feasibility of development of Ukraine's oil and gas fields based on the extraction projects that have been drawn up, analyzing their economic viability, as well as verifying their compliance with environmental safety requirements. It will also study field perspectives as a whole.
In addition, the Commission will analyze projects in terms of identifying factors that may lead to decline in the output or deterioration of other economic and technological indicators, or damage the environment.
It is reported that the Commission will consist of qualified oil and gas industry experts – representatives of mining companies and central executive authorities, scientists and other specialists.
"This will enhance the transparency and openness of procedures for assessing the efficient implementation of individual extraction projects, while ensuring that an integrated approach is adopted with regard to the commission's findings," the ministry noted.
The Commission will submit its recommendations for approval of the Coal Ministry upon review of each project.
As UNIAN reported earlier, natural gas production in Ukraine (excluding the annexed Crimea) declined in 2015 by 3.1% year-over-year to 19.2 billion cubic meters. At the same time, oil production decreased by 11.8% to 1.801 million tonnes.