JKX Oil & Gas said it welcomed the Ukraine government’s decision to cut gas production tax in the country to 29% from 55%.
The company has been pushing for the reduction which it said should restore the viability of new capital investment by independent gas producers in Ukraine.
JKX has plans in place for reinstating previously suspended drilling programmes on its Ukrainian production licences.
The reduction does not have any effect on JKX’s $270 million international arbitration claim for damages for the recovery of over payment of production taxes from the Ukraine Government, which is the subject of a full hearing in July this year.
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