10.05.2018
Companies of Smart Energy Group transferred 7.3 mln UAH of royalty to budgets of local communities for the first quarter of 2018. In particular, communities of Poltava region received approximately 3 mln UAH and Kharkiv region – 4.3 mln UAH.
In Poltava region, where the Representative Office of Regal Petroleum Corporation Limited operates, local communities received 1.2 mln UAH, regional -1.2 mln UAH, village councils – 610K UAH. In Kharkov region, where PrJSC Ukrgazvydobutok and LLC Prom-Energo Product operate, local communities received 1.7 mln UAH, regional – 1.7 mln UAH, village communities and Merefa town – 860K UAH.
As a reminder, such transfer was due to the decentralization of royalty payment according to the Law of Ukraine No. 1793-VIII (earlier known as Law Draft No 3038, actively supported by oil and gas producing companies. Thus, beginning from January 1st 2018 gas producing companies are to pay 95% of royalty for production of hydrocarbons to the State budget and 5% to the local one. In particular, 2% to the region, 2% to the region and 1% to the local budget depending on location (production) of respective natural resources.
Reference
Smart Energy is a part of Smart-Holding in charge of implementing exploration projects, commercial development of the hydrocarbon deposits and alternative energy initiatives.
Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkov region) and Regal Petroleum, a listed British company having assets in Poltava and Kharkov regions (Prom-Energo Product).
In Poltava region, where the Representative Office of Regal Petroleum Corporation Limited operates, local communities received 1.2 mln UAH, regional -1.2 mln UAH, village councils – 610K UAH. In Kharkov region, where PrJSC Ukrgazvydobutok and LLC Prom-Energo Product operate, local communities received 1.7 mln UAH, regional – 1.7 mln UAH, village communities and Merefa town – 860K UAH.
As a reminder, such transfer was due to the decentralization of royalty payment according to the Law of Ukraine No. 1793-VIII (earlier known as Law Draft No 3038, actively supported by oil and gas producing companies. Thus, beginning from January 1st 2018 gas producing companies are to pay 95% of royalty for production of hydrocarbons to the State budget and 5% to the local one. In particular, 2% to the region, 2% to the region and 1% to the local budget depending on location (production) of respective natural resources.
Reference
Smart Energy is a part of Smart-Holding in charge of implementing exploration projects, commercial development of the hydrocarbon deposits and alternative energy initiatives.
Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkov region) and Regal Petroleum, a listed British company having assets in Poltava and Kharkov regions (Prom-Energo Product).