Business news from Ukraine

ZAKHIDNADRASERVICE WANTS TO SIGN PSA AGREEMENT FOR DRILLING IN 6 FIELDS

Zakhidnadraservice LLC (Bohorodchany, Ivano-Frankivsk region) of businessman Zinoviy Kozytsky wants to develop six fields in Ivano-Frankivsk and Lviv regions under product sharing agreements (PSA), the press service of the Energy and Coal Industry Ministry of Ukraine has reported.
The press service said that a working group of the interagency commission for signing PSA will consider the application of the company within two weeks.
The application was submitted for the fields Uhnivska, Lypnykivska, Tysovetska, Tershakivska, Dibrovska and Sadzhavska.
As reported, in March 2016, Zakhidnadraservice offered the largest price of UAH 2.322 million for a license to develop Bystritska oil and gas field in Lviv region at an auction held by the State Service for Geology and Deposits of Ukraine.

OKKO GROUP STARTS GAS IMPORTS FROM EUROPE

OKKO Group, including the OKKO fuel filling stations network (Galnaftogaz Concern), has imported the first batch of natural gas in the amount of 1 million cubic meters from Europe, the holding’s press service has reported.
“The resources were purchased from the international energy trader AOT Energy. And now it is being pumped into the underground gas storage facilities,” the report said.
Currently, the holding is negotiating the purchase of gas with several other international traders.
“We have already passed all the necessary compliance procedures with five of them, which necessarily precede the signing of contracts,” the head of the new products sale department at OKKO, Volodymyr Ostaschuk, said.
In future, OKKO intends to reach the volume of natural gas purchase of 30 million cubic meters monthly.
“It is planned to increase activity in European gas markets in spring, when the heating season ends, and resources can be purchased 30-40% cheaper than during the peak consumption periods. Afterwards it will be stored in underground storage facilities. OKKO Group will also buy gas from Ukrainian producers,” the press service said.

NIBULON INVESTS $6 MLN IN AGRIMACHINERY SINCE START OF 2018

Nibulon has invested $6 million in the renewal of agricultural machinery since the beginning of 2018.
According to a press release on the company’s website, agreements have been signed for the delivery of seven Fendt 1,038 tractors, five Case IH Axial Flow 6140 harvesters, five John Deere S760 harvesters, five Tiger-Mate II cultivators, three Kinze 3000 seeders and a Lemken Rubin 6 disc harrow.
In addition, the company will buy 22 MTZ 952.3 tractors, which according to the information of Nibulon, have so far been supplied exclusively to the European market.
“This machinery will replenish the fleet of all agricultural branches of Nibulon LLC and will participate in the agricultural season of 2018, which will significantly accelerate the timing of its implementation and improve the efficiency of work,” the company said.
Nibulon LLC was established in 1991. It is one of the largest operators in the grain market of the country. It has elevators with a total capacity of about 2 million tonnes, as well as its own transshipment terminal with a capacity of 5 million tonnes in Mykolaiv.

volume of CONSTRUCTION WORK IN UKRAINE GROWS BY 21% IN 2017

The volume of construction work in Ukraine in 2017 increased by 20.9% compared to 2016, while the increase in 2016 from 2015 was 17.4%, according to the revised data.
According to the State Statistics Service, the data are given without taking into account the temporarily occupied territory of Crimea and Sevastopol and part of the ATO zone.
According to the agency, the volume of construction work in December 2017 increased by 9.7%, while compared with November 2017 it soared by 46.4%.
According to the report, in 2017 the growth in the volume of construction was observed in all spheres of construction. It grew by 20.2% for non-residential construction, while the figure in construction of residential buildings rose by 11.7%. The growth of 17.8% was recorded in construction of engineering facilities.
In 2017, construction work grew in 20 regions, as well as in Kyiv city, where it was 30.1%, to UAH 24.8 billion.
According to the State Statistics Service, the largest growth was seen in Kirovohrad region (by 53.4%, to UAH 1.4 billion), Zhytomyr region (38.9%, to UAH 1.5 billion) and Odesa region (38.4%, to UAH 10.4 billion).
The decline in construction work was seen in Luhansk region (27%, to UAH 600 million), Sumy region (4.1%, to UAH 1.23 billion) and Volyn region (1.6%, to UAH 1.5 billion). Construction works did not change in Chernivtsi region (UAH 1.15 billion).