Cadogan: Ukraine Tax Changes to have 'No Material Effect' on Operations

Junior producer Cadogan Petroleum said Tuesday that an increase in tax rates on oil and gas production in Ukraine should "not have a material effect" on its financial position, operations or work program.

Last week, the Ukrainian government passed an emergency budget that increased production taxes for an initial period of between Aug. 1 and Dec. 31. These increases will see tax on oil and gas production from shallow fields increase to 55 percent (from 28 percent) while tax on production from deep-lying fields will increase to 28 percent (from 15 percent).

Cadogan said it will continue to evaluate the impact of the changing fiscal environment and take such measures as may be necessary to protect its interests and those of its shareholders.

The firm added that it expects a delay to the start of drilling of its first well in the Debeslavetaska field, so that this well will be drilled in November rather than September. Cadogan also reported a further increase in stable production in its Monastyretska field to 50 barrels of oil per day.

On Monday, fellow Ukrainian producer JKX Oil & Gas reported that it was carefully evaluating the impact on its ongoing investment program of the emergency budget legislation.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  TRACE Secures INPEX Deal, Creates Jobs (Jun 23)
 -  What Are the Qualifications to Become ... (Jun 23)
 -  SolstadFarstad Emerges After Company M... (Jun 22)
 -  Gas Leak at Gjoa (Jun 22)
 -  Total Energy Services Completes Savann... (Jun 21)


Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager
Expertise: Contracts Administration|Planner / Scheduler|Project Management
Location: Henderson, CO
 
Operations Manager - Oil, Gas & Water
Expertise: Construction Engineer|Operations Management
Location: Santa Fe Springs, CA
 
Operations Supervisor I
Expertise: Operations Management
Location: Odessa, TX
 
search for more jobs

Brent Crude Oil : $45.54/BBL 0.70%
Light Crude Oil : $43.01/BBL 0.63%
Natural Gas : $2.929/MMBtu 1.34%
Updated in last 24 hours