The Court of Appeal ordered the State Geology Committee to extend the validity of 11 licenses of "Ukrnafta"

12.04.2018

At the beginning of April 2018, the Kyiv Administrative Court of Appeal passed a decision to leave unchanged the decision of the District Administrative Court of Kyiv, which satisfied the claim of PJSC "Ukrnafta" about recognizing the unlawful inactivity of the State Service of Geology and Subsoil as regards the failure to take a decision on the results of consideration of the company's applications for the extension of the term actions 11 special permits for the extraction of hydrocarbons. These are licenses, that expire in the first half of 2018 and give the company the right to extract hydrocarbons from the Rosilniansky, Turutinsky, Nikolaevsky, Lukvinsky, Dovbushansko-Bistritsky, Oriv-Ulichnyansky, Dolinsky, Strutinsky, Spassky, Pasichnyansky and Andriyashevsky filds. The decision of the Court of Appeal came into force on April 3, 2018.

 

This was reported in the company.

 

The Administrative Court of First Instance granted the relevant lawsuit of "Ukrnafta" on December 21, 2017 and ordered the State Geology Committee to review the company's applications for the extension of the license validity period and to accept the order on the basis of the principle of tacit consent established in Art. 4-1 of the Law of Ukraine "On the licensing system in the sphere of economic activity". The court agreed with the arguments of the plaintiff, which clearly indicate the deviations of the central executive body implementing state policy in the sphere of geological study and rational use of mineral resources, from fulfilling its direct responsibilities and delaying the extension of the company's special permits, although the entire package of documents required for the extension "Ukrnafta" filed in advance.

 

In case of further evasion of the State Service of Geology from the execution of the ship's decision, "Ukrnafta" will have to apply to the State Executive Service for the purpose of compulsory execution of the decision of the District Administrative Court of Kyiv.

 

In addition, in mid-February 2018 the company filed a similar lawsuit against the State Service of Geology on the continuation of 16 more special permits, which expire this year.

 

The extension of 27 special permits, which expire this year, is critical for ''Ukrnafta". It will have a significant impact on its production and financial performance, the implementation of the investment program, the employment of employees and revenues of state and local budgets, the repayment of the overdue tax debt. "Ukrnafta" estimates, that these 27 fields account for 53% of annual oil production with condensate and 30% of annual gas production, and from this production within the year to the state and local budgets it is expected that about 3 billion UAH will be received from the rent only.

Source:nefterynok

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