Kharkiv Regional Council has approved an application from ESCO-Pivnich LLC to work at deposits on the Kaponivska gas field.
“[The council] approved the application of ESCO-Pivnich LLC to carry out exploration work on the deposits, including an experimental program, with future extraction of oil and gas on the Kaponivska field, which is located in Kharkiv and Nova Vodolaha districts,” reads the decision made at a session of the regional council last week.
The head of the legal department of Kharkiv Regional Council, Dmytro Babenko said that in line with the documents submitted to the council, ESCO-Pivnich plans to develop the Kaponivska field until 2033.
“The total cost of exploration work is Hr 285 million. The expected production capacity will be 3-11 million cubic meters of gas a year until 2033. The sales price of the natural gas is Hr 3,500 per 1,000 cubic meters. Thus, the company expects to have a margin of 11 percent,” Babenko said.
He said that the final decision on allowing the use of deposits would be made by the State Service of Geology and Deposits of Ukraine.
