SUBSOIL WEALTH IS THE STRENGTH OF THE COUNTRY


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Subsoil 2014. Emergency motions

If a couple of years ago to take stock of the mining industry has been difficult because of the closeness of the information is already public in 2014 were not only senior managers of most oil and gas companies, but officials geology. As a result of the emergence of public dialogue among subsoil users, including international geological organizations, the first in Ukraine has become available on-line digital information about the special permit for subsoil use and mining companies have been actively speak out about planned innovations the industry, making, thus agenda regulators questions regarding these or other problems in the industry.
 
Beginning in 2014 promised a lot of prospects for subsoil users, especially who developed oil and gas mineral wealth of the country. Due to the worsening political situation and the change of power in Ukraine, the new government announced that the price of imported inputs should be reviewed. Russia these arguments are not taken into account. And while politicians decide on which side the truth, for the sustenance of the country, particularly its economy, as never were in demand deposits Ukrainian resources. Throughout the year, especially after the termination of deliveries on 16 June by the "Gazprom" is becoming increasingly important domestic production of hydrocarbons as a basis for energy security and the guarantee of a stable gas supply to consumers. Dobychniki disappointing as we could: the state of the company for 6 months reduced production volumes by 2%, and private companies have improved its score by 32%.
 
Increase production by trying to attract private companies to develop new fields. During 2014 the State Service of Geology and subsoil spent 2 auction for the sale of special permits for subsoil use, which sold 2 of 5 auctioned licenses for exploration (including ODA) oil and gas areas in Poltava and Sumy regions. The third auction, scheduled for 12/04/14 and was canceled, out of 11 proposed for the development of deposits of 10 - with the oil and gas reserves. In addition, in December 2014 Gosgeonedr planirola hold another auction for the sale of special permits, which had planned to implement a license to develop three hydrocarbon fields in the Lviv and Sumy regions. Most likely, these license areas will be offered to investors in the next year. In addition, the state-owned company NAK "Nadra of Ukraine" for 2014 held an open competition to attract investment for the development of promising oil and gas properties, such as old-Bohorodchany, Olkhovskaya, Ortynitskaya, Volosyanskaya, North Kotelevskaya, Perevozivskaya, Krasnoilsk and other areas.
 
At the time, while Ukrainian mining companies built up their own production figures, the government has improved relations with European suppliers. And instead of a step towards its own production, in late July subsoil decided to involve not only to ensure the country's natural resources, but also to fill the emptying of the state budget: the level of rent payments has doubled from 28% to 55% for gas from a depth of 5 km and 15% to 28% of the depth of more than 5 km. This has reduced corporate profits and reduced investment programs. At the same time it was not possible to improve the situation of the state's largest gas company "Ukrgasdobycha", which for many years sought at least a small increase in the price of gas sales, which in 2014 is only 412 USD. / M3 (including VAT). The company insisted on raising the price to 890 UAH. / Thousand. cubic meters, which would be logical due to the increase in natural gas prices for the population by 40%. Yet maintain the level of production of the company succeeded thanks to several new high-debit well drilled. About the new investment is not the issue, but a significant portion of the proceeds simply "ate" the rapid devaluation of the hryvnia. However, the next year, the government is considering raising the price of gas for the population in the 3 - 5 times, which will make it possible to increase the profitability of the state mining company.
 
Already in October, state-owned companies have reduced production by 0.5%, as a result of increasing the tax burden private traders showed a decrease in production rates and the overall growth of only 10% compared with August - 30% in September - 15%. In the 10 months 2014, gas production was 16, 465 billion. Cubic meters of natural gas 15, 885 billion. Cubic meters, which in the total 2.6% more than the volume in 2013.
 
If we consider the statistics of private companies, they are indicators of 10 months in 2014 improved by 29.3% compared to the same period of 2013. LLC "Poltava Petroleum Company" put into commercial development Elizavetovskoe field in Poltava region, LLC "Arabic energy alliance" was ordered to Minenergouglya the introduction of a pilot development fallow North Yablunivskoy area. Increase in production of one of the largest mining companies "Cube-Gas" is associated with the commissioning of a new well "Makeevskaya - 17" in the Luhansk region. The success of a new leader in terms of production - Burisma Holding Company is also associated with drilling new wells.
 
But these successes can, as stated by representatives of companies that do not find a continuation in 2015, and the fiscal burden - not the only measure that prevents the development of work subsoil. The main reason for holding back investors from investment in the development of Ukrainian deposits - instability of the legislation. Only during the 2014 regulatory mechanisms sphere of subsoil use went from market to manual steering and vice versa several times.
 
In 2015, to encourage the development of the mining industry are planning several methods: Ministry of Fuel and Energy initiates cancellation of elevated rates of rental fees for the use of mineral resources at the level of 55% at a depth of up to 5 thousand. M and 28% at a depth of more than 5 thousand .; at special auctions for subsoil use for 2014 - 2015's plan to implement 45 licenses for oil and gas area; next year Ukraine must implement the international standard EITI; autumn began the process of public discussion of draft Procedure for issuance of special permits for subsoil use with the involvement of the mining companies, the final draft of which may appear at the beginning of 2015 .. This is not an exhaustive list of factors that may contribute to the development of the oil and gas industry in Ukraine. To investment, tax deductions for state and local budgets, employment of Ukrainian specialists - geologists only inconsistent policy reform. And this is the time when Ukraine needs to fight for every investor. Due to the deteriorating political and economic crisis in Ukraine, investors have been slow to starting work on the Ukrainian fields, but nevertheless in no hurry to give up their development. So, by the end of this year had to be signed by an operating agreement with Chevron in the framework of the PSA in 2013, but the company announced its withdrawal from the project unilaterally; Eni requests to transfer the work program at the end of 2015, and the company Shell, which last year signed an operating agreement, to suspend work as part of the territory, where the planned exploration work carried out fighting. Investor without oil and gas sector of Ukraine has no chance of development.
 
Reference:
Since the beginning of the last decade, prospecting and exploration works on perspective areas too expensive for the budget activities. In 2001-2013 gg. actual exploration activities ranged 102 - 583 million USD per year, while the budget provides for the allocation for this purpose 198 - 1,056 million USD. For example, in the 2012 budget provided funding exploration work in the amount of UAH 1 billion, of which USD 500 million was directed to other programs, and in 2013 - only 198.7 million USD. In 2014, the costs of the program "Development of the mineral resource base" provided in the amount of 149, 3 million. Hryvnia. 2015 draft budget in the amount laid only 120 million USD.
 
 
January 15, 2015
Roman Storozhev, "Terminal" № 1 (743) on January 5, 2015