Cadogan Petroleum has noted that the Ukrainian Government last week passed emergency budget legislation increasing production taxes for the oil and gas industry for the period 1 August 2014 to 31 December 2014. Tax on gas production from horizons shallower than 5,000m increases to 55 per cent, for those deeper than 5,000m it increases to 28 per cent (from 28 per cent and 15 per cent respectively).

Tax on oil production from horizons shallower than 5,000m increases to 45 per cent (previously 39 per cent), for those deeper than 5,000m it increases to 21 per cent (previously 18 per cent). For gas wells put on stream after 1 August 2014, a coefficient of 0.55 will be applied against the rates for the first 2 years of production.

Tags: Cadogan Petroleum plc