Following the expiration of the current licence on Tuesday, the oil and gas company said that the country's central licensing authority, the State Geological Services (SGS), had not yet approved the license because of “temporary internal procedural reasons”, and that it has prepared to suspend production until it receives a valid permit.
“Suspension is not expected to last long and the company is ready to resume production as soon as the license is awarded,” said the company in a statement.
Earlier in the month the regional council approved the application for a 20-year production license for the Blazhiv field, formerly known as Monastyretska, and passed on to the SGS.
Cadogan filed a 20-year production license with the SGS nearly five months before the current exploration license’s expiration on Tuesday.
Usually, the company operates three wells on the Blazhiv field, which produce an aggregate of 225 barrels per day.