In Ukraine JKX's wholly-owned subsidiary Poltava Petroleum Company (‘PPC’) is one of the largest non-state producers of oil and gas in Ukraine.
PPC holds 100% interest in five production licences in the Poltava region of Ukraine: Ignatovskoye, Molchanovskoye, Novo-Nikolaevskoye and Rudenkovskoye contain distinct fields which together cover 127sq.km. and form the Novo-Nikolaevskoye Complex; and the Elizavetovskoye production licence which covers an area of 104.7sq.km. and was issued in November 2014 for a period of 20 years.
PPC also holds the Zaplavskoye exploration licence being Zaplavskoye (within the Novo-Nikolaevskoye Complex) which comprises a total exploration area of 197.5sq.km.
PPC was established in 1994, initially focusing its efforts on four fields located within the Novo-Nikolaevskoye Complex located in the Poltava region of Ukraine. Production of commercial quantities of oil and gas began in 1995. JKX has maintained its leading position as one of the largest non-state producers of oil and gas within Ukraine.
PPC continues to be the only non-state oil and gas company with a connection to the Souyez pipeline which transports gas directly into Ukrainian and European markets.
Liquefied Petroleum Gas ('LPG') production facilities
During 2011 PPC initiated production and sales of LPG at the central production facility. The process extracts propane and butane from the export gas stream for sale as LPG. This reduces the gas available for export however the value of the LPG revenue stream enhances PPC’s economic performance by increasing overall realisations from its gas production.
The LPG processing plant was designed and built in Canada and loading facilities were constructed in Ukraine.
The off-take of daily LPG production is contracted to pre-qualified wholesale distribution companies and dispatched by road tanker.