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According to estimates by member companies of the European Business Association, Ukraine has a significant number of abandoned wells that could potentially be used to resume production. The use of modern technologies, including sidetracking and other production enhancement methods, could help shorten project implementation timelines and optimise capital expenditure compared with drilling new wells.<\/p>\n
At the same time, unlocking this potential requires transparent and predictable conditions for attracting private investment. Clear rules for accessing the assets, transparent investor selection, a balanced allocation of geological, technological and financial risks, and appropriate economic incentives are needed.<\/p>\n
In the view of business, one of the key areas could be the development of public-private partnerships<\/strong> between state-owned oil and gas companies and private investors and oilfield services companies. Such cooperation could provide additional financing, bring in modern technologies and expertise, improve the use of existing infrastructure and create additional opportunities to increase domestic gas production.<\/p>\n The Association also considers it appropriate to explore the practical application of various contractual models of cooperation, including risk-service agreements, investment agreements, joint activity and production-sharing agreements, as well as to remove regulatory and organisational barriers to the implementation of relevant projects.<\/p>\n Particular attention should be paid to economic incentives for investors. Business considers it appropriate to explore the possibility of applying a special rent taxation regime to hydrocarbon production from revived wells, subject to an appropriate economic assessment and the need to maintain a balance between the interests of the state budget and the need to attract private capital.<\/p>\n To put this potential into practice, the Association proposes launching a joint dialogue between government authorities, state-owned enterprises and business, identifying promising assets for well rehabilitation, developing a transparent mechanism for attracting investors and considering the establishment of a dedicated working group.<\/p>\n The relevant letter was sent to government authorities and representatives of the relevant Verkhovna Rada Committee. The Association is ready to contribute to further work on the relevant legislative, economic and organisational solutions and to facilitate dialogue between business and the state to support the development of the oil and gas sector and attract investment to Ukraine\u2019s economy.<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" According to estimates by member companies of the European Business Association, Ukraine has a significant number of abandoned wells that could potentially be used to resume production. The use of modern technologies, including sidetracking and other production enhancement methods, could help shorten project implementation timelines and optimise capital expenditure compared with drilling new wells. At […]<\/p>\n","protected":false},"author":33544,"featured_media":778014,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[4,5,22],"tags":[],"yoast_head":"\n