JKX Suspend 2015 Capital Investment Programme in Ukraine

Source: www.gulfoilandgas.com 1/7/2015, Location: Asia

The Board of JKX (JKX) has decided that the combination of Ukrainian Government-imposed restrictions on selling its gas to industrial clients and the punitive rate of gas production tax requires the Company to suspend its planned 2015 capital investment programme in Ukraine until the economic parameters for investment improve. Consequently, the Skytop drilling rig is being stacked following its recent completion of well Ig-140, and operational and ancillary costs reduced.

Further to the announcement of sales restrictions imposed on private gas producers by the Ukrainian Government Decree of 29 November 2014, JKX reports that it sold approximately 80% of its December gas production capacity to industrial customers, with only 20% of its gas production capacity shut-in during the month.

The market available to private gas producers in Ukraine, however, continues to contract with competition for the increasingly limited number of credit worthy industrial customers becoming intense. JKX anticipates that gas sales may reduce to less than 50% of its production capacity in Ukraine whilst the Decree remains in force and will necessitate shut-in of a proportionate level of gas production.

At the same time, the Ukrainian temporary level of tax on gas production of 55% has been incorporated into the Ukrainian tax code for 2015.

JKX Oil & Gas plc is an exploration and production company listed on the London Stock Exchange. The Company has licence interests in Ukraine, Russia, Hungary and Slovakia.


United Kingdom >>  8/5/2022 - The Equinor-operated Rosebank oil and gas field will provide significant investment into the UK.

According to a socioeconomic study by Wood...

United States >>  8/5/2022 - Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) ("Calumet") today announced a series of transactions conducted by its unrestricted subsidiary...

Saudi Arabia >>  8/3/2022 - Saudi Arabian Oil Company (“Aramco”) today signed a Memorandum of Understanding (MoU) with China Petroleum & Chemical Corporation (Sinopec) covering m...
Azerbaijan >>  8/2/2022 - Azerbaijan’s goal of diversifying its energy mix has received a major boost with the approval of US$ 114.2 million financing package from the European...

United States >>  8/2/2022 - The Biden-Harris Administration, through the U.S. Department of Energy (DOE), today announced $26 million to fund projects that will demonstrate that ...
Canada >>  8/1/2022 - Aurora Hydrogen, a company developing emission-free, hydrogen production technology, has raised $10M USD in Series A funding led by Energy Innovation ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.