Exploration & Production

Ukraine’s new royalty regime proves attractive

Ukraine has started attracting new investors to its upstream sector by more than halving royalties on new wells production Ukraine has started attracting new investors to its upstream sector by more than halving royalties on new wells production.
By Silvia Favasuli 1 March 2018 0 29798
A Naftogaz Ukrainy drill pad. A Naftogaz Ukrainy drill pad. (Naftogaz Ukrainy)

A new upstream royalty regime and plans to slim down the permitting process are successfully attracting foreign players to Ukraine. Czech utility EP Power Europe committed this week to invest $200 million in the development of Ukraine’s Yuzivske gas field. The drilling will be carried out by Slovakian joint stock company Nafta. At least three other international companies are evaluating investments in the country, according to Roman Opimakh, executive director of the Ukrainian Association of Gas Producers. 

In December, Ukraine’s government introduced a new tax regime...