Ukrainian News Agency reported that the Naftohaz Ukrainy national oil and gas company wants zero rents from 2010 on production of natural gas and gas condensate and natural gas transit.

Mr Ihor Didenko the first deputy CEO of Naftohaz Ukrainy said this at a meeting concerning the financial conditions of the national company. He said that "Since the budget process of 2010 has started, we propose zero rents on production of gas and gas condensate and on gas transit."

Mr Ihor Didenko said that the measure will help ensure required funds in investment into the production of gas and gas condensate and reconstruction of the gas transportation system.

The national company also proposes to increase the natural gas rates for the population to the economically viable level and to endorse a schedule of increase in gas rates for the municipal heating companies.

As Ukrainian News earlier reported, the rent on natural gas extracted from the depth of up to 5,000 meters is UAH 50 per 1,000 cubic meters, the rent on natural gas extracted from the depth of over 5,000 meters is UAH 40 per 1,000 cubic meters, and the rent on natural gas extracted on sea deposits is UAH 10 per 1,000 cubic meters.

The rent on oil and gas condensate extracted from the depth of up to 5,000 meters is UAH 1,529.9 per ton, the rent on oil and gas condensate extracted from the depth of over 5,000 meters is UAH 566.1 per ton. The natural gas transit rent is UAH 1.67 per 1,000 cubic meters per 100 kilometer.

(Sourced from Ukrainian News Agency)