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At a government meeting, a resolution was approved regarding using a portion of the produced gas that remains state-owned according to the signed PSAs.
This document provides a clear and transparent mechanism for selling the state's share of production. In practice, it will allow for the efficient distribution of resources, which will allow the state to benefit even more from the signed agreements.
"PSAs are a new and quite complex mechanism for our state, as we have never applied it before and therefore do not have practical experience. Currently, hydrocarbon agreements are pioneers in this process. Step by step, the state and producers are developing and refining in detail a working and efficient system so that PSAs operate clearly, steadily, and understandably for all participants," said the Executive Director of the Association, Artem Petrenko.
According to the government document adopted, investors transfer the produced resource to the subsidiary company "Gaz Ukrainy" of the Naftogaz Group in proportions determined in the signed PSAs. The subsidiary will then sell this gas openly and transparently on a licensed commodity exchange. All proceeds from the sale will be transferred to the state and local budgets in the territories where the respective plot of land is located. Thus, Ukraine and the territorial communities will receive funds from operating PSAs to implement critical social initiatives.
We thank the Ministry of Energy of Ukraine, Gaz Ukrainy, the Ukrainian Geological Survey, and other executive bodies for their diligent work and constructive cooperation on this critical issue.