273 wells were sunk in 2018-2020due to incentive taxation. New wells produced extra 4.5 bcm of gas. The share of gas in the total volume is growing every year: in 2018 it was 1% and reached more than 14% in 2020. 2018 was marked by the peak of drilling new wells, when the market had positive price conditions, resulting in the arrival in Ukraine of leading service companies.
"As we can see, incentive taxation is an effective mechanism of combatting the natural decline in gas production and depletion of fields, as figures speak for themselves. Undoubtedly, this provision should be kept and extended until 2030 with the same incentives to be introduced for drilling new oil and gas condensate wells. In addition, incentives for gas producers to develop heavy hydrocarbon deposits and restore obsolete wells are of importance. Their prompt implementation will motivate investors to work more actively and plan their activities for years to come," Artem Petrenko, Executive Director of the Association of Gas Producers of Ukraine, said during the VII International Industry Forum, which took place on March 10 in Poltava.