DTEK is considering the possibility of expanding its oil and gas business in Ukraine, CEO of the company Maksym Timchenko has said in an interview with the Ekonomichna Pravda edition.
“We are constantly studying the deposits of all available players on the market. That is, we are open to expanding our business, without exception, with all players, including state-owned companies. If there are such opportunities not only for acquisitions, but also for joint activities, some kind of joint projects in exploration and production, we are ready for this,” he said.
According to Timchenko, in particular, the assets of Geo Alliance group for DTEK are “a potential area of our interest.” At the same time, he did not comment on the details of the negotiations.
As reported, in 2020 DTEK Oil and Gas increased natural gas production by 10.8% (by 180 million cubic meters) compared to 2019, to 1.84 billion cubic meters. In 2021, the company plans to increase gas production to 2 billion cubic meters.
Geo Alliance produced 203 million cubic meters of gas in 2020.
Geo Alliance is under the mandate of the international investment and consulting group EastOne, which unites the assets of Victor Pinchuk. In 2012, EastOne announced a strategic partnership between Geo Alliance and Arawak Energy Ukraine BV, part of the Vitol group of companies, one of the largest operators in the world energy market.
Transit of oil through the territory of Ukraine by pipelines to European countries and Belarus in January-March 2021 decreased by 14.2% (by 488,300 tonnes) compared to the same period in 2020, to 2.959 million tonnes, according to the data of JSC Ukrtransnafta.
In particular, transit in the direction of Budkovce (Slovakia) amounted to 1.986 million tonnes (less by 13.4% compared to January-March 2020), Fenyeslitke (Hungary) – 702,300 tonnes (less by 21.3%), Mozyr (Belarus) – 270,600 tonnes (more by 3.5%).
The volume of oil transportation to refineries of Ukraine in the first quarter of this year amounted to 526,000 tonnes, which is 11.2% (66,100 tonnes) less than in January-March 2020. In particular, oil transportation along the Odesa-Kremenchuk route amounted to 197,900 tonnes (less by 13.9%).
Thus, in 2020, the total transportation of oil through the company’s pipelines amounted to 3.485 million tonnes (less by 13.7%). The share of transit volume in it is 84.9%, pumping to the country’s refineries – 15.1%.
In March 2021, oil transit through Ukraine by pipelines fell by 35.3% (by 492,800 tonnes) compared to the same month in 2020, to 903,000 tonnes.
Pumping to Ukrainian refineries last month decreased by 0.5% (by 900 tonnes), to 195,400 tonnes.
Ukrtransnafta said among the factors that influenced the total volume of oil transportation in the first quarter of 2021 were a decrease in oil demand among European consumers due to quarantine measures and the withdrawal of an oil refinery in Hungary for scheduled repairs.
Ukraine in January-March 2021 imported 1.812 million tonnes of petroleum products (according to foreign economic activity code 2710: petrol, diesel fuel, fuel oil, jet fuel, etc.), which is 10.4% more year-over-year (1.642 million tonnes). According to the State Customs Service, petroleum products were imported to the tune of $894.99 million, which is 8.2% less than in January-March 2020 ($ 975.061 million).
Fuel was imported from Belarus for $416.163 million (the share is 46.5%), Russia for $283.626 million (31.69%), Lithuania for $85.767 million (9.58%), other countries for $109.434 million (12.23%).
In addition, Ukraine exported 113,426 tonnes (49.4% compared to January-March 2020) of petroleum products for a total of $53.49 million (17.4%). The cost of fuel delivered to counterparties from Turkey amounted to $12.338 million, the Czech Republic some $11.778 million, Latvia some $10.936 million and other countries to $18.438 million.
Ukraine in January-March 2021 increased the import of oil and petroleum raw materials (according to foreign economic activity code 2709) by 1.7 times (by 124,640 tonnes) compared to the same period in 2020, to 305,313 tonnes.
According to the State Customs Service, raw materials for $110.084 million were imported over three months, which is 10.4% more than in January-March 2020 ($99.746 million).
The entire volume of oil came from Azerbaijan.
Ukraine did not export oil in January-March 2020 and 2021.
NJSC Naftogaz Ukrainy, as the sole shareholder of JSC Ukrtransnafta, has allowed the company to conclude an agreement for the sale of 80,000 tons of Azeri Light oil (plus or minus 10%) to the subsidiary of the Belarusian Oil Company – BNK (UK) Limited (the United Kingdom).
The decision of Naftogaz made on October 21 was published on the Ukrtransnafta’s website.
Earlier, on August 17, Naftogaz agreed on the possibility of Ukrtransnafta selling a batch of 90,000 tonnes of oil (± 10%) on FOB terms at the port of Pivdenny.
In addition, by the decision of October 15, Naftogaz agreed on the possibility of Ukrtransnafta selling the second batch of Azeri Light oil of 90,000 tonnes (± 10%) on the basis of EXW delivery to the tank farm of the Kremenchuk linear production and dispatching station (LPDS). Thus, it can be assumed that the buyer of oil will supply it for the needs of the Kremenchuk Refinery (Ukrtatnafta).
Crude oil transit through Ukraine by pipelines to European countries and Belarus in January-September 2020 increased 5.5% (by 517,200 tonnes) compared to the same period in 2019, to 9.885 million tonnes, according to the data of JSC Ukrtransnafta.
The volume of oil transportation to refineries of Ukraine during this period amounted to 1.911 million tonnes, which is 8.7% (153,600 tonnes) more than in January-September 2019. Including oil transportation along the Odesa-Kremenchuk pipeline amounted to 839,000 tonnes (a rise of 32.2%).
Thus, in the first nine months of this year, the share of transit volume of the total oil transportation (11.796 million tonnes) amounted to 83.8%, the share of pumping to the country’s refineries – 16.2%.
In September 2020, oil transit through Ukraine by pipeline transport decreased 6.7% (by 90,200 tonnes) compared to the same month last year, to 1.255 million tonnes.
Pumping to Ukrainian refineries last month decreased 13.6% (by 32,100 tonnes),to 204,000 tonnes, including transportation of Ukrainian oil amounted to 112,100 tonnes, Azerbaijani oil – 76,800 tonnes, WTI oil – 15,100 tonnes.
