KIEV, Sept. 15 – The retention of the gas royalty rate for Ukrgazvydobuvannia at 70% and the decline of oil prices to lower than $40 per barrel would result in gas production by the company in 2016 falling to 12.4 billion cubic meters (bcm) compared to the 14.5 bcm projected for 2015, Ukrgazvydobuvannia Chairman Oleh Prokhorenko said.

"If we leave a 70% royalty and receive oil at the price of $30 per barrel and have the level of payments with Naftogaz Ukrayiny at 83%, which we see on average during the year, we would receive UAH 1.3 billion after paying on all liabilities to finance the operation of the company and its capital expenses," he said.