The State Service of Geology and Mineral Resources of Ukraine has sent a notice to PJSC Ukrnafta on withdrawing 14 of the company’s licenses for hydrocarbon production at its oil fields in Ivano-Frankivsk and Lviv regions.
According to the order #253 of the state service, operations at these fields may be suspended in September this year due to the company's unpaid rent tax debt.
Ukrnafta plans to explain the potential negative consequences and make sure to complete correct contingency planning.
Ukrnafta executive board chairman Mark Rollins said: “I should be clear that Ukrnafta is opposed to this decision as it is not in anybody’s interest.
“The remarkable thing about the intensified efforts of the State Service of Geology and Mineral Resources on licenses suspension is the timing, which happened to be right before the upcoming General Meeting of Ukrnafta’s Shareholders, where it's planned to vote for the start of the financial recovery of the company.
“This legal process aimed at preventing bankruptcy will enable Ukrnafta not only to pay off debts to its creditors, but also create necessary condition for the company to maintain its core operations, i.e. production of oil and gas, which serves as its main source for accumulated tax liabilities repayment, including the rent tax.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe company noted that licence suspension will jeopardise its financial rehabilitation in addition to threatening its existence.
Suspension of special permits is expected to worsen the state's energy dependency through losses in hydrocarbon production.
