PJSC “Ukrnaftoburnia” (“UNB”) according to the results of work in the first half of 2023 received a profit of 700 million UAH, said the director of PJSC “Ukrnafta”, to which the company is transferred in management, Sergiy Koretskyy.
“In the first half of 2023, the company received 700 million UAH of profit. There are reasons to believe that according to the results of the second half of the year “UNB” will be able to earn almost three times more. We state the fact of a significant increase in realization prices,” he wrote on his Facebook page.
“As stipulated by the concluded contracts with ARMA, 90% of net profit will be transferred in favor of the state,” Koretskyi specified.
According to him, the company also managed to eliminate technological deficiencies and launch the 88th well.
“After the drilling was completed, we received a flow of high-pressure formation water from the upper horizons. We carried out repair and water isolation works. Consequently, we increased production by 170 thousand cubic meters of gas and 30 tons of condensate per day,” he said.
In addition, “UNB” plans to soon complete commissioning of the booster compressor station, which will slow down the natural decline in production.
As reported, after the arrest and court decision to transfer to the management of ARMA “Ukrnaftoburnia”, LLC “Sakhalinskoye”, LLC “Sirius-1”, LLC “East Europe Petroleum” in the case on the legality of subsoil use of the Sakhalin field, the Cabinet of Ministers of Ukraine by the order №454-r of May 23, 2023 supported the proposal to transfer to the management of “Ukrnafta” corporate rights in these companies.
At the end of June, the AMCU authorized Ukrnafta to receive shares in the authorized capitals of these companies for management. On July 7, the acts of acceptance and transfer of assets were signed.
“Ukrnafta is one of the largest private gas production companies in Ukraine. Since 2010, it has been developing the Sakhalin oil and gas condensate field (Krasnokutsk district, Kharkiv region) with reserves of 15 billion cubic meters of gas. The company’s gross production in 2020 will amount to 725.4 million cubic meters of gas and 80.8 thousand tons of oil and condensate, in 2021 – 691.3 million cubic meters and 76.6 thousand tons.
For the Sakhalin field as a whole, gas production in 2020 amounted to 844.3 million cubic meters and 86 thousand tons of oil and condensate, in 2021 – 789.5 million cubic meters and 80.8 thousand tons.
PJSC “Ukrnafta” in January-July 2023 increased production of oil with condensate by 4.5% (by 36 thousand tons) compared to the same period of 2022 – up to 828 thousand tons, the press service of the company reported.
The average daily production of oil with condensate for seven months of 2023 was 3.9 thousand tons, 2022 – 3.7 thousand tons, 2021 – 4 thousand tons.
Ukrnafta’s gas production in January-July 2023 increased by 6.8% (by 40 million cubic meters) compared to the same period of 2022 – to 628 million cubic meters.
Average daily gas production for seven months of 2023 amounted to 2.964 million cubic meters, 2022 – 2.772 million cubic meters, 2021 – 3.015 million cubic meters.
According to the press-service, for seven months of the current year 65 workovers, 18 stimulations, 15 stimulations without workover crews, 13 coiled tubing operations were carried out at the company’s fields. 21 wells were brought out of inactivity.
“Cumulatively, these and other measures brought additional 52 thousand tons of oil and 28 million cubic meters of gas,” the company said.
In addition, Ukrnafta in January-June 2023 transferred 12.32 billion UAH of taxes to budgets of all levels, including 1.187 billion UAH of income tax for the first quarter and 2.077 billion UAH – for the second quarter.
As reported, Ukrnafta, which has been fully under state control since the end of 2022, has set a strategic goal to double its oil and natural gas production to 3 million tons and 2 billion cubic meters respectively by 2027. In 2023, the company plans to increase oil production by 5.8% (up 0.077 million tons) year-on-year to 1.447 million tons, and gas production by 0.3% (up 0.003 million cubic meters) to 1.04 billion cubic meters.
On November 5, 2022, the Supreme Commander-in-Chief decided to seize the shares of Ukrnafta and Ukrtatnafta (except for the controlling and blocking stakes of Naftohaz Ukrainy, respectively) as state property during martial law. Prior to the seizure, the structures of Igor Kolomoisky and Hennadiy Bogolyubov owned about 42% of Ukrnafta and, together with other partners, a controlling stake in Ukrtatnafta.
As of the end of March 2023, Ukrnafta had 89 fields with 23 million tons of proven reserves and with 1,806,000 active oil wells and 152 gas wells. The company operates 537 gas stations, of which 28 have been modernized. Sales at them this year are expected to reach 350,000 tons, or about 7% of the market. Last year, wholesale and retail sales of petroleum products totaled 1.665 million tons.
At the end of June 2023, the Antimonopoly Committee of Ukraine (AMCU) allowed Ukrnafta to take control of stakes in the authorized capitals of Ukrnaftoburnia, Sakhalinskoye, Sirius-1, and East Europe Petroleum, which operate in the Sakhalin gas condensate field. In general, the Sakhalin field will produce 844.3 million cubic meters of gas and 86 thousand tons of oil and condensate in 2020 and 789.5 million cubic meters and 80.8 thousand tons in 2021.
condensate, GAS, OIL, UKRNAFTA
PJSC Ukrnafta will provide fuel to the National Children’s Specialized Hospital Okhmatdyt (Kyiv) to operate during blackouts, the company said in a press release on Thursday, citing a post by Director Sergiy Koretsky on its Facebook page.
Koretsky signed a memorandum with Okhmatdyt CEO Volodymyr Zhovnir.
“While we are working in the energy rear, doctors are saving lives. It is important that doctors can work and children can receive medical care under any conditions. I am very grateful to the medics who continue to save lives in all circumstances – during air raids, shelling, blackouts,” said the Ukrnafta CEO.
“Okhmatdyt is the largest specialized children’s hospital in Ukraine. It performs over 10 thousand surgeries annually. 20 thousand of its patients are treated, and about 270 thousand receive consultations.
Since the beginning of the full-scale invasion, Okhmatdyt has not stopped working. It provided emergency care to the victims of the hostilities, worked during the occupation of Kyiv region and blackouts.
The National Agency of Ukraine for the Detection, Search and Management of Assets Derived from Corruption and Other Crimes (ARMA) has proposed that the assets of the Glusco gas station chain be transferred to the management of PJSC Ukrnafta under a special procedure.
According to ARMA’s Facebook post, the proposal was supported by the Ukrainian Energy Ministry at a meeting attended by representatives of relevant ministries and state-owned companies on Monday.
ARMA head Olena Duma said that the future contract should specify the minimum amount of monthly revenues to the budget for the management of the network’s assets at the level of UAH 5 million, coordination with the agency of changes in the management of companies whose corporate rights will be transferred to the manager, as well as the submission of specific reporting information on all accounts.
“I firmly believe that the growth of the guaranteed income of the state at least 13 times is the best evidence of the effectiveness of new approaches in the work of ARMA. In addition, we are only talking about a minimum amount, which will increase as fuel sales increase. Now the government has the final word – and dozens of gas stations across the country will start to really work for the state budget”, – the report quotes the words of the head of ARMA Elena Duma.
At the same time, Naftogaz Oil Trading LLC (NOT), which manages Glusco’s assets, reiterated that they effectively and transparently manage the network, and ARMA’s actions to terminate management contracts are unlawful.
“Naftogaz notes that the termination of the contracts occurred with numerous legal violations, the inspection was conducted improperly, and ARMA’s actions jeopardize the preservation of physical evidence in the criminal proceedings against the former owner of these assets, Viktor Medvedchuk.”
In addition, ARMA and NOT are currently parties to the ongoing economic concentration harmonization procedure.
“By the time further actions to comply with the provisions of the antimonopoly legislation of Ukraine are agreed upon, any actions to change the manager are unlawful and may result in significant penalties for the participants of such concentration,” Naftogaz clarified.
“NOT” continues to consider the concluded contracts of property management Glusco valid, and will fulfill them until the moment of the resolution of disputes”, – summarized in the company.
As reported, the Cabinet of Ministers of Ukraine in May 2022 agreed the ARMA proposal to transfer to the management of NJSC Naftogaz of Ukraine arrested assets of Glusco (until 2018 – the network of Rosneft), which were associated with Viktor Medvedchuk,
NOT was identified as the asset manager, with whom ARMA subsequently entered into a fixed-term management agreement.
At the end of July 2023, the recently appointed head of ARMA, Olena Duma, announced that the National Agency would conduct audits of the efficiency of management of the largest assets, and an audit of the efficiency of management of the Glusco network of gas stations by Naftogaz Ukrainy has already begun.
According to her, ARMA has received information about improper fulfillment of the contract terms by the manager, in particular, the submission of unreliable data regarding expenses and income from management activities.
“The manager has been using Glusco’s assets for more than a year, which are actually 89 gasoline filling stations, eight land plots, two oil depots and corporate rights of 35 companies. At the same time, only UAH 1.151 million has been transferred to the state budget for the whole time, which raises well-founded questions about the efficiency of management,” she said.
On August 3, ARMA announced the termination of contracts with NOT to manage the assets of the Glusco gas station network.
At the same time, Naftogaz said that under the management of “NOT” resumed the work of 81 filling stations and one oil depot, which did not work for a year and a half, timely payment of wages to employees. From August 2022 to July 2023, 289 million UAH of mandatory payments to the state and local budgets were paid.
The head of Naftogaz Ukrainy, Oleksiy Chernyshov, said that during the period of managing the assets of Glusco, the group invested significant funds in the restoration of the network, repaid its debts, and at the request of ARMA paid them “for some part of future profits, as they are not yet in question.”
Naftogaz’s 100% subsidiary Ukrgasvydobuvannya has a network of 21 U.GO gas stations in Kharkiv and Kharkiv region. Starting from 2022, Naftohaz Oil Trading also has the right to use the brand and plans to expand its network in other regions.
PJSC Ukrnafta has a strategic goal to ensure Ukraine’s energy independence in oil products by 2027 by doubling its oil and gas production, the Verkhovna Rada’s Committee on Energy and Housing and Utilities said Tuesday, citing the company’s director Serhiy Koretsky.
“Our company’s plan is ambitious enough, but there is a reason to announce it. Ukrnafta has every opportunity to be on the list of Ukrainian companies stabilizing the work of Ukraine’s financial and economic system,” he said during a visiting meeting of the Rada energy committee on the prospects of the Ukrainian oil refining industry in western Ukraine on June 1.
According to Koretsky, by 2027 the PJSC plans to increase oil production from almost 1.5 to 3 million tons per year. The company will achieve such indicators by drilling new wells and intensifying production, restoring production at idle wells, as well as by introducing methods to improve oil recovery at existing fields.
As Koretskyy noted, Ukrnafta started implementation of the plan to drill 9 wells in 2023 and at least 30 wells in 2024. At that, the company has been drilling 1-2 wells a year on average in recent years. “Ukrnafta also did not participate in auctions for new licenses.
“Analysis of the external environment shows that in the medium term, the company’s products will remain in demand and Ukrnafta will have the potential to develop on key markets. We believe that very soon the company will be talked about as the best employer, universal supplier of oil products and highly profitable national enterprise,” summarized the head of PJSC.
“In 2023, Ukrnafta plans to increase its oil production by 5.8% (by 0.08 million tons) to 1.45 million tons compared to the previous year, and gas production by 0.3% (by 0.003 million cubic meters) to 1.04 billion cubic meters.
On November 5, 2022, the Supreme Commander in Chief decided to confiscate Ukrnafta shares (except for the controlling interest in Naftohaz Ukrainy) as state property during the martial law. Prior to the seizure, the structures of Ihor Kolomoyskyy and Hennadiy Boholyubov owned about 42% of Ukrnafta shares.
As of the end of March 2023, Ukrnafta had 89 fields with 3.7 thousand oil and gas wells. The company operates 451 gas stations.
The Cabinet of Ministers approved the financial plan of PJSC Ukrnafta for 2023, which provides for 12 billion UAH of net profit, the head of the company Serhiy Koretskyy said on Facebook on Monday.
“For the first time in the years of the company’s existence, this document was prepared in accordance with the requirements of the law of Ukraine “On management of state property” and received five mandatory conclusions of the ministries,” Koretsky wrote.
The conclusions, in particular, received from the ministries of economy, defense, energy, digital transformation and finance.
The document provides for the company on the results of activity in 2023 74 billion UAH of net income, 12 billion UAH of net profit, 25 billion UAH of tax payments in favor of the state, including rent, income tax, VAT, payroll taxation, as well as 9 billion UAH of investments, including a record 5.5 billion UAH of investments in production.
“The actual results of work, which we openly communicate, prove that managerial decisions taken by the team are able to provide a stable rhythmic work of the enterprise and, as a consequence, the growth of income and profits,” said the head of Ukrnafta.
As it was reported, Ukrnafta finished the first quarter of 2023 with a net profit of UAH 4.3 billion.
This figure is equal to net profit received by the company for the whole 2020 (UAH 4.3 billion) and almost twice as much as the result for 2021 (UAH 2.4 billion).
Ukrnafta’s average daily oil output in the first quarter of 2023 amounted to 3.926 thousand tons, while the average daily output in 2022 was 3.753 thousand tons.
On November 5, 2022, the Supreme Commander in Chief decided to confiscate Ukrnafta shares (except for the controlling interest in Naftohaz Ukrainy) as military property of the state for the period of martial law. Prior to the seizure, the structures of Ihor Kolomoyskyy and Hennadiy Boholyubov owned about 42% of Ukrnafta shares.
As of the end of March 2023, Ukrnafta had 89 fields with 3.7 thousand oil and gas wells. The company operates 451 petrol stations.
“Ukrnafta in 2022 reduced its production of oil with condensate by 8.6% compared to 2021 – to 1.37 million tons.
“Ukrnafta” in 2023 plans to increase oil production by 5.8% (by 0.08 million tons) compared to last year – to 1.45 million tons, gas – by 0.3% (by 0.003 million cubic meters), to 1.04 billion cubic meters
