Cub Energy Inc. commented on the newly enacted law reducing gas royalties in Ukraine.
On Thursday, December 31, 2015, Ukraine President Petro Poroshenko signed a new law reversing the increase of royalties on natural gas production put into place 16 months ago on August 1, 2014. Effective January 1, 2016, royalty rates are reduced from 55% to 29% for wells drilled at depths up to five kilometers. For well depths greater than five kilometers, the royalty rate is decreased from 28% to 14%.
Additionally, under the enacted law, the two-year royalty rate discount for newly drilled wells will be discontinued as it is redundant with the new lower royalty rate.
Mikhail Afendikov, Chairman and CEO of Cub said: "We have waited patiently for royalty rates to decrease to allow us return to higher netbacks and redeploy capital into our Ukraine assets."
Related Categories :
Government & Regulatory
More Government & Regulatory News
-
PDC Energy Second Quarter 2022 Results
-
PDC Energy's 69-Well Kenosha Project Approved by COGCC
-
Biden to Release One Million BPD from Reserves for Six Months; Push for Federal Leasehold Production
-
Iraq Energy Cabinet, Schlumberger Ink $480MM Well Deal
-
EIA Reports Crude Inventory Increase of 1.3 Million Barrels
Europe News >>>
-
Halliburton First Quarter 2022 Results; Revenue by Region, Call Highlights -
-
TotalEnergies Will Make No New Investments in Russia -
-
Equinor to Exit Russian JVs, Halt New Investments in Country -
-
Citing Ukraine Invasion, BP to Dump 19.75% Stake in Rosneft, Exit Board
-
Exxon Partners for Carbon Capture Project in Scotland -