PJSC Ukrnafta, the largest oil producing company of Ukraine, has been forced to stop oil and gas production at the Yuriivske, Golubovske and Lopushnianske fields due to the withdrawal of licenses.
The energy firm has expressed its dissatisfaction with the development, stating the decision by the Public Service of Geology and Mineral Resources of Ukraine to stop output could lead to tax underpayment, job cuts and “the stagnation of the Ukrainian oil and gas industry as a whole”.
PJSC Ukrnafta Chairman, Mark Rollins, commented in a company statement:
“A forced decision regarding stoppage of production at three fields of PJSC Ukrnafta has never taken place before. The stoppage of production may bring some irreversible consequences – significant expenditures on well conservation and possibly lead to physical liquidation and recultivation of land. It may also cause environmental risks and violate the conditions of hydrocarbon fields’ development.”
PJSC Ukrnafta has stated that it is already taking measures to protect its rights in court and is actively supported by relevant trade unions. The company has addressed both the Public Service of Geology and Mineral Resources of Ukraine with a request to abolish the decision, and the Government to intervene.
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