The cost of the full cycle of gas extraction by Ukrgazvydobuvannya – from the beginning of drilling to the closure of oil well – may vary between 180 and 250 dollars for one thousand cubic meters, CEO of Ukrgazvydobuvannya Oleg Prohorenko informed during interview with ET.
Prohorenko noted that it is impossible to speak about the prime cost, because the gas production is the long-term investment business.
“If we speak about the cost of the full cycle - from the beginning of drilling to the closure of oil well, then depending on the complexity of extraction, the cost may vary between 180 dollars per ths cubic meters and 250 dollars per thousand cubic meters”, - the CEO of the company said.
“We may point the finger and say that the prime cost of extraction is 100 dollars, but it won’t be right. You are fooled. It is a manipulative figure”, he added.
In response to a follow-up question on which profitability of Ukrgazvydobuvannya during gas extraction, Prokhorenko stated: “The net profit of the company for 2017 – UAH 30.5 bln. This figure should be divided into the sales income, which is 95-98 bln hryvnias. You obtain marginality of 40%”, he noted.
Previously, it was reported that in 2017, Ukrgazvydobuvannya demonstrated growth of 4.4%; however the private gas producing companies decreased production.