The Association of Gas Producers of Ukraine (AGPU) has initiated the creation of a platform jointly with the experts in the energy sector. Today's meeting was focused on discussion of the problems of the oil and gas industry, current state of realization of the Concept for Development of Ukraine's Gas Production Industry by 2020. Such a format has proven its relevance. The discussion was going for over 2 hours at the office of SigmaBleyzer.
Main points of the meeting, in brief:
Roman Opimakh, Association of Gas Producers of Ukraine:
Today, all the necessary reforms in the industry have been initiated, the legislative mechanisms of industry development and deregulation have been elaborated. However, the processes are proceeding extremely slowly, although they should be developing very rapidly. It is extremely necessary to make decisions on simplification of the permitting system. The public should be notified and educated on the importance of the industry in the life of every Ukrainian.
Leonid Unigovskiy, Naftogazbudinformatyka:
The industry remains risky for the foreign investors, who do not understand how to start business in our country. Geological information is closed. We need to open up the secondary information as soon as possible. We should give an opportunity to the investor to individually check the primary information on the fields, which are already being developed.
Mykhailo Gonchar, Centre for Global Studies "Strategy XXI":
We only have one week left to pass the industry-relevant bills in the Parliament. They have already been on the agenda multiple times. If they are not passed, the starting point for changes in the industry shift to one more year later.
Today, there is the demand of the public to build up the gas production industry, increase production, regardless of what the state authorities think.
Tetiana Dovzhok, ex-Head of the Department at the Ministry of Energy and Coal Industry:
In Ukraine, people do not fully understand the concept of energy security and gas production's role in it. There are statements, but there is no understanding. Realization of the top-priority measures should be concentrated in one executive authority. Industry's Ministry should initiate a "tax vacation" for the industry, coordinate all the initiatives and law amendments. This is not happening currently. Legal stimuli should be created and priorities should be set in the industry.
Yuri Sakva, All-Ukrainian Energy Assemby:
Implementation of the Concept for Development of Ukraine's Gas Production Industry by 2020 is the #1 priority in the country. It is an ambitious program, but currently it looks rather fictitious. It is necessary to make a forecast of whether the Concept will be a success or a failure as soon as possible. Who will have the courage to come out and tell that it will be a failure?
Volodymyr Omelchenko, Razumkov Centre:
Market players should jointly notify the Government about the necessity of speeding the implementation of the Concept. Or we have to correct the numbers on the document already, or else we will not implement the Concept.
Oleksandr Laktionov, Naftogaz of Ukraine:
Natural gas production figures have improved for the state-owned Ukrgasvydobuvannya. All the necessary conditions have been created today: there are resources, and thus there is an increase in reserves. However, there are many problems, one of the most painful ones being the blocking by the regional councils of the issue of special permits for field development. Such actions directly contradict the state strategy of increasing gas production.
Oleksandr Narbut, Kyiv Energy Research Institute:
Today only the independent companies can say for sure whether production is growing or falling, since it is these market players who precicely feel the deep processes underneath.
Today, some political forces are pushing forward the message that the country has achieved energy independence. We should change these populistic mottos. We urgently need to create a project office of the industry, which will communicate in real time mode with the Government.
Oleksandr Sukhodolia, National Institute for Strategic Studies:
The Ministry of Energy and Coal Industry should be the initiator of all the reforms in the industry, as well as their coordinator. For instance, such an important for investors matter as simplification of the tax system in the industry to facilitate its development, and increasing the number of special permits issued. Conversely, today we are observing the state executive authority's inactiveness. There are not initiatives, no decisions... It should be eliminated. We need to sharply change from populism to precise actions. We need to consider an agreement between the Association and the Government...