JKX Oil & Gas PLC Consolidated report on payments to governments (5787P)

TIDMJKX

RNS Number : 5787P

JKX Oil & Gas PLC

30 May 2018

30 May 2018

JKX Oil & Gas plc ("JKX" or the "Company")

Consolidated report on payments to governments

JKX Oil and Gas plc presents below its consolidated report on payments to governments for the year ended 31 December 2017, for activities related to exploration, development and extraction of oil and gas resources.

The Company has prepared the following consolidated report in accordance with DTR 4.3A of the Financial Conduct Authority Disclosure and Transparency Rules and in compliance with the UK's Reports on Payments to Governments Regulations 2014 (SI 2014/3209), as amended by the Reports on Payments to Governments (Amendment) Regulations 2015 (SI 2015/1928).

Basis of preparation

The Company discloses below payments made to governments by the Company's subsidiaries involved in extractive activities. The term 'government' includes any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a government or entity that is controlled by such authority.

Reporting currency

Where payments have been made in currencies other than the reporting currency (US$), the exchange rate existing at the time the payment is made has been used.

Payment types disclosed at project level

"Project" is defined as "operational activities governed by a single contract, license, lease, concession or similar legal agreements and form the basis for payment liabilities with a government". Where multiple such agreements are substantially interconnected, this was considered a project for the purpose of this report.

The payments are presented on a cash basis, net of any interest and penalties on late tax payments or on underpaid tax.

There were no payments in kind made to a Government during the year.

The following payment types are disclosed for legal entities involved in extractive activities for the year ended 31 December 2017:

Corporate income taxes

Payments to governments based on taxable profits under legislated income tax rules.

Production taxes

Payments to governments in relation to revenue or production generated under licence agreements.

Fees

Payments to governments in the form of fees include licence fees.

Infrastructure improvements

Such payments correspond to payments made for infrastructure (for example buildings) that forms part of the fundamental facilities and systems serving a community or area. Such payments are included in the Report regardless of whether or not these payments constitute a contractual obligation.

Excluded amounts

Taxes levied on consumption such as value added taxes, personal income taxes, sales taxes, property and environmental taxes have not been included in this report.

Payments summary

Payments to governments made during the year ended 31 December 2017:

 
                    Production   Corporate   Infrastructure         Fees              Total 
                       taxes       income     improvements 
                                   taxes 
 Governments          $'000        $'000         $'000             $'000              $'000 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 Ukraine 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 State treasury: 
  State budget          15,030       2,934                -                  -             17,964 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 State treasury: 
  Local budget               -           -              142                  -                142 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 Total Ukraine          15,030       2,934              142                  -             18,106 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 Russia 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 State treasury: 
  State budget           1,810           -                -                  -              1,810 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 Total Russia            1,810           -                -                  -              1,810 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 Hungary 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 State treasury: 
  State budget             213           -                -                  -                213 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 Total Hungary             213           -                -                  -                213 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 Slovakia 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 State treasury: 
  State budget               -           -                -                 56                 56 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 Total Slovakia              -           -                -                 56                 56 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 Grand Total            17,053       2,934              142                 56             20,185 
                   -----------  ----------  ---------------  -----------------  ----------------- 
 

Payments to governments by project type made during the year ended 31 December 2017:

 
                             Production   Corporate   Infrastructure          Fees                  Total 
                                taxes       income     improvements 
                                            taxes 
                               $'000        $'000                             $'000                 $'000 
                            -----------  ----------  ---------------  --------------------  --------------------- 
 Ukraine 
                            -----------  ----------  ---------------  --------------------  --------------------- 
 Novomykolaivske 
  Complex                        10,335           -              114                     -                 10,449 
                            -----------  ----------  ---------------  --------------------  --------------------- 
 Elyzavetivske 
  field                           4,695           -               28                     -                  4,723 
                            -----------  ----------  ---------------  --------------------  --------------------- 
 Payment at an 
  entity level                        -       2,934                -                     -                  2,934 
                            -----------  ----------  ---------------  --------------------  --------------------- 
 Total Ukraine                   15,030       2,934              142                     -                 18,106 
                            -----------  ----------  ---------------  --------------------  --------------------- 
 Russia - Koshekhablskoye 
  Field                           1,810           -                -                     -                  1,810 
                            -----------  ----------  ---------------  --------------------  --------------------- 
 Hungary - Hajdunanas 
  IV mining plot                    213           -                -                     -                    213 
                            -----------  ----------  ---------------  --------------------  --------------------- 
 Slovakia - exploration               -           -                -                    56                     56 
                            -----------  ----------  ---------------  --------------------  --------------------- 
 Grand Total                     17,053       2,934              142                    56                 20,185 
                            -----------  ----------  ---------------  --------------------  --------------------- 
 

ENDS

   JKX Oil & Gas plc                               [phone] 

Ben Fraser, Chief Financial Officer

   EM Communications                          [phone] 

Stuart Leasor, Jeroen van de Crommenacker

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