Last month, Burisma Group announced that it would invest US$100 million to increase Ukraine’s gas production by developing new gas fields and drilling 20 new wells. This impressive investment is a major step in helping Ukraine achieve energy independence – a strategic goal that has become a national priority over the last few years. On this $100 million investment, $74 million will be paid in taxes to the Ukrainian State.
Burisma Group President Nikolay Zlochevskyi commented, “Burisma produces billions of cubic meters of gas, pays billions hryvnias to the State budget and invests billions in gas production. Helping Ukraine achieve energy independence is one of our company’s core strategic aims and we are proud to be able to play an important role in this process. We will continue investing in Ukraine and working hard to support the country at this critical time.”
The World Fact Book ranks Ukraine in the 24th position in the global energy market with proven natural gas reserves of 1.104 trillion cubic metres. These reserves have rapidly become a major stake in strengthening Ukraine’s national independence.
While the oil and gas industry has always been a strategic segment of any economy – a segment in which business is interwoven with security and energy national policies – Ukraine is faced with specific challenges since it has clashed repeatedly with its neighbour, oil and gas superpower Russia, since 2013.
Over the course of 2014, increasing tensions between Ukraine and Russia caused energy prices to rise to new heights over longer periods of time. Prices soared as the markets feared that a war between Russia and Ukraine would affect the former’s ability to provide energy commodities. Taking the risk into account, Ukraine had already been trying to increase natural gas production by 50% to improve its stance on the global energy market and help drive down prices to the end consumer.
Founded in 2002, Burisma Group, an independent oil and gas company operating in Ukraine, has rapidly become one of the largest independent gas producers in the country and beyond. Burisma took a significant part in this national effort by constantly increasing its production volumes.
Since the effort allowed Burisma to become a leading player in Ukraine’s energy market, it has turned the group into “the fastest-growing private gas producer in Central Europe,” an impressive result for a relatively young organization, as noted by Joseph Cofer Black, a former director of the CIA’s Counterterrorist Center who joined Burisma Group’s Board of Directors in early 2017.
The recent pledge to a $100m USD investment to develop gas projects in Ukraine is another significant step taken by Burisma Group to help Ukraine achieve energy independence. Most of the group’s production volume comes from the heart of Ukraine, the Dnieper-Donets basin, which contains 82% of its natural gas reserves.
Burisma’s recent investment certainly reflects a commitment to bring more jobs in Ukraine, increase its economic strength and add more revenue to the state. Overall, Burisma’s economic growth and expansion will help Ukraine’s economy and improve the country’s energy security.