Business news from Ukraine

Business news from Ukraine

Anthony Marino elected Chairman of Naftogaz Supervisory Board

Anthony Marino was elected chairman of the supervisory board of Naftogaz of Ukraine at a meeting on Friday, Alexei Chernyshov, head of the company’s board, said on Facebook.

“Just now at a meeting of Naftogaz’s supervisory board, its chairman was elected. I salute Anthony Marino on his election!”, – wrote the head of NAC.

“Anthony (USA/Canada) has significant management experience. He is currently president and CEO of (Canadian – IF) energy company Tenaz Energy. Prior to that, he served as executive director, president and CEO of Vermilion Energy, an international hydrocarbon exploration and production company,” Chernyshov noted.

Morino served on the supervisory boards and boards of directors of six companies and organizations from 2002-2020.

“I am sure that his many years of experience in hydrocarbon exploration and production will help our group of companies to achieve the best results,” the head of Naftogaz stressed.

Chernyshov said the reinstatement of Naftogaz’s supervisory board at a time when Ukraine’s energy system is being tested through a full-scale war is an extremely important development.

“Anthony Marino is an upstream specialist with more than 38 years of experience in the oil and gas industry. He is a U.S. and Canadian citizen,” added Naftogaz in Telegram.

He has served as executive director, president and CEO of Vermilion Energy, an international hydrocarbon exploration and production company with a market capitalization of $4 billion.

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Supreme Anti-Corruption Court denies arrest of former Naftogaz head Kobolev

The Supreme Anti-Corruption Court (HACC) has denied the prosecutor’s request for a preventive measure in the form of detention with an alternative to a 365 million UAH bail for the former head of Naftogaz of Ukraine, Andrey Kobolev.
The court made a decision to that effect on Monday night.
“The petition for a measure of restraint in the form of detention against the suspect Kobolev to leave without satisfaction … The decision can be appealed in the appeal chamber of the SACC within five days from the moment of the announcement,” the judge announced.
As reported, a prosecutor of the Specialized Anti-Corruption Prosecutor’s Office and detectives of the National Anticorruption Bureau of Ukraine last week notified the former head of Naftogaz Andriy Kobolev of suspicion of abusing his official position while ensuring himself a 229m hryvnia bonus payment for the company’s victory in the Stockholm arbitration with Russia’s Gazprom.
According to the investigation, this amount considerably exceeds the normative amounts of such payments (37.48 mln hryvnyas).
The Stockholm arbitration in 2018-19 as a result of two disputes between the companies on the supply and transit of gas ruled that Gazprom had to pay additional $2.56 billion to NAC.
At the same time, the arbitration fully rejected Gazprom’s claims to Naftogaz on the “take or pay” condition for the period 2012-2017 in the amount of $56 billion.

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“Naftogaz” has identified more than 500 filling stations where it is possible to refuel in case of blackout

579 filling stations of the U.GO and Ukrnafta brands, which are part of Naftogaz group, have the appropriate equipment and are ready to operate in case of a blackout, the company said in a press release on Friday.
“Gas stations are represented in 20 regions of Ukraine and Kiev,” the group said.
A full list of gas stations can be found on Naftogaz Group’s Power Drive website: fill up at U.GO and Ukrnafta gas stations even in blackout conditions | Naftogaz Ukrainy (naftogaz.com).
“The enterprises of the Naftogaz group do everything possible to support Ukraine and the Ukrainians during the war. So we will be glad to see you at U.GO and Ukrnafta gas stations equipped with generators, which are ready for any possible challenges,” Oleksiy Chernyshev, chairman of the board of Naftogaz Ukraine, was quoted in the press release.
As reported, Naftogaz Oil Trading (a subsidiary of the NJSC) as of November 2022 launched 46 gas stations under the brand U.GO on the basis of assets of the arrested network Glusco, which consists of 126 gas stations
“Ukrnafta owns 85 special permits for the production of hydrocarbons. On its balance sheet there are 1,809 oil and 153 gas wells. The company owns 537 petrol stations, of which 449 were in operation at the beginning of December 2022. The controlling stake in the company belongs to Naftogaz of Ukraine, while the minority stake (about 42%) was held by Igor Kolomoysky and Hennadiy Boholyubov’s structures before the withdrawal.

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Naftogaz of Ukraine board chairman discusses gas purchase and production development with Norwegian Equinor

Naftogaz of Ukraine CEO Alexei Chernyshev and Norwegian Equinor CEO Anders Opedal met Friday to discuss gas purchases and potential development of Ukrainian production, the NJSC press service said.
“We have the first agreements with Equinor on the purchase of additional gas volume to pass the most difficult heating season in our history. We hope for special terms of purchase and further reservation of the volume we need,” Chernyshev said in a statement.
In addition, the head of Naftogaz on December 1 discussed with Norwegian Ambassador Erik Svedal the involvement of technology Norwegian oil and gas business and financing the purchase of additional volume of gas needed for Ukraine to pass the winter, given the constant Russian rocket terror.
“At a time when Russia is using the destruction of energy infrastructure as a weapon, support for Ukraine’s energy sector is as important as military support. We look forward to Norway’s continued assistance in this context,” Chernyshev said.
According to the press service, the ambassador said that he expects to increase the announced amount of aid to his state, and future funding will also be allocated to ensure energy security of Ukraine.
As reported, Norway will provide Ukraine with funding of NOK 2 billion (about $195 million) for the purchase of natural gas in winter 2022. Norway plans to use the European Bank for Reconstruction and Development (EBRD) as a channel to support gas purchases in Ukraine, while Naftogaz will be a formal recipient of the fuel.
Previously, the Norwegian prime minister said that the kingdom would provide Ukraine with an aid package worth 1bn euros.

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City Council of Zhytomyr will allocate a place to Naftogaz for construction of a bio-CHP

At its meeting on Monday, October 24, the Zhytomyr City Council plans to allocate land plots for the construction of two bio-CHP plants planned by NJSC Naftogaz Ukrainy, Mayor Sergei Sukhomlin said.
“On Monday we are holding an extraordinary session, providing land plots for the construction of large bio-CHPs in Zhytomyr. Many thanks to Naftogaz. It has already ordered equipment, memorandums on construction have been signed with it,” he said during the Energy Club discussion on Thursday.
According to him, these CHP plants, which will also operate on RDF (Refuse Derived Fuel, fuel from waste after sorting – ER), produced at a recently opened waste processing plant, will provide an opportunity to receive 15 MW of electricity for the city and reduce gas consumption in the OZP up to 5 million cubic meters m, while 43-45 million cubic meters are planned for 2022. m, and in 2015 consumption was 97 million cubic meters. m.
At the same time, the mayor noted that several additional quarterly local boiler houses on wood chips have already been put into operation in the city this year, and the thermal power plant that was opened last year on this raw material additionally supplies 1.1 MW of electricity to the network.
“In conditions when Zhytomyr was completely de-energized as a result of Russian missile attacks on October 18, this helps a lot,” Sukhomlin concluded.
At the same time, he said that the city authorities, over the past two days after the enemy strikes, developed a plan to provide critical enterprises with energy resources, in particular, with the help of generators.
“We have allocated funds. Now we urgently buy high-power generators in Turkey,” Sukhomlin said.
He explained that these generators will be used to power the water utility, the main 600 kW sewerage station and 26 pumping stations.
“At least in this case, we will supply water, hourly, but we will,” the mayor assured.
In addition, he said that approximately the same plan with generators is designed for heat communal energy, which includes 10 district and 32 quarterly boiler houses, in particular, the city will have about five or six teams with generators of 250 kW, which will include quarterly boiler houses for four to five hours to warm up the system.
“We are working on this system so that the city does not remain without heat and water, because a potbelly stove in every apartment in a multi-storey building is a terrible picture,” the mayor noted.
According to him, in extreme cases, in each microdistrict of the city, according to the developed plan, there should be large heating points located, for example, in kindergartens or schools where there are autonomous boilers.
“We faced completely new challenges. We simply counted on savings. And when the system cannot work because there is simply no electricity, we were not ready for this,” the mayor stressed.
As reported, in Zhytomyr on October 18, as a result of strikes inflicted by Russian invaders, electricity and water supply stopped working. As the mayor Sergei Sukhomlin reported, the city remained completely de-energized and deprived of water supply for an hour, hospitals worked on backup power.
During the day, according to him, 25-30% of the city is connected to electricity, but the capacity is still not enough for the full operation of the water supply and sewerage.
Sukhomlin said that it is still difficult to assess the extent of the damage and, accordingly, how long it will take to completely eliminate the consequences of the strike, while noting that everything depends on the issue of capacity.
At the end of September, Sukhomlin announced the opening of the first waste processing plant in Ukraine, suspended at the beginning of the war, tentatively in the next few weeks.
He noted that the volume of RDF raw materials, which can be produced from waste produced by the city and used for heat production, can replace 20 million cubic meters. m of natural gas per year.
According to information on the website of the Zhytomyr City Council, the capacity of the waste processing plant, the construction of which began in May last year, is 0.5 million cubic meters. m per year.
In early October, Naftogaz announced that it had begun preparatory work for the construction of thermal power plants that will run on biomass (wood chips) and RDF in Lvov and Zhytomyr. The planned period for putting objects into operation in Lviv is the first quarter of 2023, in Zhytomyr – the fourth quarter of 2023.
In total, Naftogaz intends to build at least nine thermal power plants and bio-boiler houses in eight regions of Ukraine with a total capacity of 250 MW of thermal energy and 52 MW of electricity.

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Naftogaz in Lviv is implementing a project for construction of a thermal power plant on wood chips for UAH 1 billion

NJSC Naftogaz of Ukraine is implementing in Lviv, together with the city council, a project for the construction of a CHP plant on wood chips, which is planned to be put into operation by February 2023.

“I am sure that by February the CHPP will be operational. It will take a few months instead of a year and a half. NAC helps with the implementation of this project both in financing and in development. several months,” Naftogaz head Yuriy Vitrenko said at a briefing during a visit to the Lviv region on Friday.

As the correspondent of “Energoreforma” reports, according to Vitrenko, the NAC, which is implementing a number of similar projects in Ukraine, is ready to support other cities in this direction. ‘We have an interest in investing in such projects in order to import less gas at enormous prices. The implementation of such projects is beneficial both economically and in terms of ecology,” Vitrenko explained.

At the same time, he noted that both the Lviv authorities and the NAC itself also have a number of agreements in order “to then attract funds from IFIs for such projects.”

Lviv Mayor Andriy Sadovoy noted that this would be the city’s first powerful thermal power plant running on alternative fuels, which would cover about a quarter of its heat needs. “We planned such a project with the EBRD for a long time, but according to their classical procedures, we could only start it next year. But the Russian aggression intensified the thought process so much that we came to an agreement with Naftogaz,” Sadovoy explained.

According to him, the participation of the national company, which is the market leader, gives more opportunities and priorities, including in obtaining equipment.

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