Court orders Geology Service to consider Ukrnaftoburinnya application for issuance of special permit for gas production at Sakhalinske field

The Kyiv District Administrative Court has ordered the State Service of Geology and Mineral Resources of Ukraine to consider the application of PrJSC MC Ukrnaftoburinnya for the issuance of a special permit for gas production at the Sakhalinske field.

This is stated in the company's message, Ukrainian News Agency reports.

Also, the Geology Service is obliged to consider a statement on the conclusion of an agreement with Ukrnaftoburinnya on the terms of use of subsoil.

"The relevant executive letter was issued by the court on February 9, 2024. On February 27, 2024, the court document entered into legal force, so the application should be considered by the Geology Service immediately, in accordance with the deadlines established by law," the statement said.

The message recalls that from December 2023, production at the Sakhalinske field was stopped after the decision was adopted by the Sixth Administrative Court of Appeal.

It is noted that from the shutdown of natural gas production at the Sakhalinske field, the state loses UAH 190 million of rent, UAH 130 million of VAT and about UAH 80 million of income tax each month.

As Ukrainian News Agency earlier reported, the production of Ukrnaftoburinnya amounted to 1.4 million cubic meters of gas per day until forced shutdown on December 1, 2023 by court order.

In May 2023, the Cabinet of Ministers transferred corporate rights of Ukrnaftoburinnya to the management of Ukrnafta, the largest oil producing company.

In April, the Pecherskyi District Court of Kyiv transferred the corporate rights of Ukrnaftoburinnya seized within the framework of criminal proceedings to the Asset Recovery Agency.

Ukrnaftoburinnya is conducting commercial development of the Sakhalinske gas and gas condensate field.

Earlier, Ukrnaftoburinnya was affiliated with businessmen Vitalii Khomutynnyk and Ihor Kolomoiskyi.

In 2022, the company's gas production amounted to 415 million cubic meters (2.2% of total gas production in Ukraine).