Exploration firm JKX Oil & Gas is set to reconsider its operations in Ukraine following the passing of an emergency budget legislation by the country’s government.
The new law is set to increase production taxes for the oil and gas industry between August 1 and December 31 this year.
The most significant increase will hit gas production where the rate will approximately double to a level of 55%, JKX said.
“In light of this significant change to the fiscal environment for independent oil and gas operators in Ukraine, the board of JKX is evaluating the impact on its ongoing investment programme carefully, and will be taking operational and financial measures to protect the interests of the company and its shareholders,” the firm said.
Outside Ukraine, JKX has licence interests in Russia, Hungary and Slovakia.
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