Over the last 7 months of this year the Companies of Smart Energy Group have transferred 18.3 mln UAH of royalty to local budgets

Over the last 7 months of this year the Companies of Smart Energy Group have transferred 18.3 mln UAH of royalty to local budgets

Over January-July 2018 the Companies of Smart-Energy Group have transferred 18.3 mln UAH of royalty to local budgets of Poltava and Kharkiv regions. Among the companies of Smart-Energy Group, which operate in the above mentioned regions are  Ukrgazvydobutok PJSC,  the Representative Office of Regal Petroleum Corporation Limited, Promenergoproduct LLC.


In particular, the Representative Office of Regal Petroleum Corporation Limited paid 3 mln UAH to Poltava local budget. Also, another 3 mln UAH went to Lokhvitsa district budget and Chornukhy district budget. Village Council budgets received 1.5 mln UAH.


Kharkiv local budget, where Ukrgazvydobutok and Prom-Energo Product companies operate, received 4.3 mln UAH. Regional budgets also received 4.3 mln UAH. Another 2.1 mln UAH went to Village Council budgets and Merefyansk City Council.


“Beginning from 2018 total sum of royalty paid monthly paid by our companies has increased by 19%. This resulted from the increase of hydrocarbons production at our fields. Considering the transfer of 5% from the amount of royalty to local budgets, councils have received a million finance support for implementation of important and necessary social projects. We hope that such tendency will continue and by implementing new successful drilling projects the level of royalty payments will increase as well”, - noted Sergii Glazunov, CEO of Smart Energy Group.


As a reminder, starting from January 1st, 2018 royalty payments have been decentralized. Thus,  state and private companies pay 95% of royalty for hydrocarbons production to the state budget, and 5% to the local ones, of which 2% goes to the district budgets and 1% goes to the budgets of local governments depending on location (area of production) of 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 (Kharkiv region) and Regal Petroleum, a listed British company having assets in Poltava and Kharkiv regions (Prom-Energo Product).
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