The Verkhovna Rada adopted a bill on liberalization in the sphere of oil and gas production

Tuesday, 6 Mar 2018

The Verkhovna Rada adopted a bill on liberalization in the sphere of oil and gas production

The Verkhovna Rada adopted a bill on liberalization in the sphere of oil and gas production

On March 1, 2018, 256 deputies of the Verkhovna Rada voted “For” the adoption in the second reading of bill No. 3096-d on deregulation of permits for oil and gas production.

The bill implies the use of the servitude mechanism for the construction of oil and gas production facilities and pipeline transport without changing the purpose of land.

The draft law also abolishes the need to obtain a mining allotment, excludes oil and gas production facilities from the list of objects of town-planning activity, cancels the mandatory entry of deposits into research and industrial and industrial development by decision of the Ministry of Energy and Coal Industry.

After the completion of the period of research and industrial development of deposits, oil and gas producers get the right to use land plots on the basis of an agreement with the owner of the land, up to a change in the special purpose and execution of documents for the right to use. (now the companies are obliged to stop the extraction at the time of processing the documents).

Removal and transfer of the ground cover for further drilling can be carried out without special permission on the basis of a detailed land management project.

Subsoil users will be entitled to use their geological information without agreement with the authorities. In addition, it is proposed to expand the range of entities that can conduct a geological and economic assessment of oil and gas reserves (now this right is owned exclusively by the State Commission of Ukraine for Mineral Reserves).

According to experts, the Verkhovna Rada has previously set rental rates for subsoil use to produce natural gas at new wells at 6% (for super-deep wells) and 12% (depth to 5 km).

leave your comment