JKX to suspend 2015 capex programme in Ukraine
Jan 7 (Reuters) - JKX Oil & Gas Plc said it would suspend its capital expenditure program in Ukraine for 2015, citing government-imposed restrictions on selling gas to industrial clients and an increase in gas production tax.
The company said gas sales may reduce to less than 50 percent of its production capacity in Ukraine while the decree remained in force, adding that it would halt a proportionate level of gas production.
A presidential ruling requires Ukrainian gas producers to supply all their output in the 2014-15 seasons to the population rather than industries to help the country tide over an energy shortage.
JKX, which has most of its production assets in Ukraine and Russia, had in September cut its 2014 capital expenditure programme in Ukraine after the government almost doubled gas production tax. (Reporting By Mamidipudi Soumithri in Bengaluru; Editing by Gopakumar Warrier)
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