Reform objective
To promote investments in the sector development to provide the country with energy resources.
Mechanism
Amending the legislation.
Instruments
Draft Resolution of the Cabinet of Ministers of Ukraine “On Amendments to the Procedure for the Geological Information Management”.
Draft Resolution of the Cabinet of Ministers of Ukraine “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine of October 17, 2018 #848).
Draft Resolution of the Cabinet of Ministers of Ukraine “On Amendments to the Procedure for Issuing Special Permits for Subsoil Use”.
Draft Resolution of the Cabinet of Ministers of Ukraine “On Amendments to the Methodology for Determining the Initial Sale Price of Special Subsoil Use Permits at Auctions”.
BRDO experts have been researching the sector since 2018 when the Green Paper “Regulation of oil and gas subsoil access” was published. It served as a basis for drafting regulatory acts.
Proposals
- Creating equal and transparent conditions for subsoil access, in particular in the implementation of electronic auctions for the sale of special permits for their use.
- Simplifying the state geological information management.
- Developing mechanisms for attracting investments into the oil and gas sector, taking into account the need for market deconcentration.
Why is this essential for Ukraine?
Ukraine has huge reserves of energy resources but still depends on imports. Natural gas reserves in Ukrainian subsoils allow to fully meet the country’s needs for 30 years, and oil and condensate reserves – for 15 years. At the same time, 81% of oil needs and 44% of gas needs are met through imports. The state policy on the oil and gas subsoil access regulation does not reach its goals and requires a radical change in approaches.