IBM Ukraine LLC, which is wholly owned by IBM Central and Eastern Europe, has won a tender called by NJSC Naftogaz Ukrainy to have its strategy for information technology developed. IBM Ukraine, with a bid of UAH 3.748 million (VAT included), defeated other bidders, namely Ernst & Young (E&Y) and PwC Polska, Naftogaz announced in the ProZorro e-procurement system. The services must be provided by December 31, 2018.
The goal is to determine the level of IT maturity and ensure maximum efficiency from investments in IT. As a result, the target operating model of the company’s IT and the development roadmap should be developed, including a portfolio of projects, the necessary resources and portfolio management processes.
The IT analysis should be carried out for Naftogaz and its subsidiaries, namely Ukrtransgaz, Ukrgazvydobuvannya, Ukrtransnafta, Ukrspetstransgaz, Chornomornaftogaz, and Ukravtogaz.
Naftogaz Ukrainy unites the largest oil and gas producing enterprises of the country. It is a monopolist in transit and storage of natural gas in underground storage facilities, as well as transportation of crude oil by pipelines throughout the country.
Ukraine decreased imports of crude oil (foreign trade code 2709) by 3.3% or 14,071 tonnes in January-June 2018 year-over-year, to 416,520 tonnes.
The State Fiscal Service reported that oil for $227.374 million was imported, which is 24.4% more than in January-June 2017 ($182.777 million).
Ukraine in January-June 2018 imported crude oil for $214.112 million from Azerbaijan, $7.176 million from Algeria, $4.018 million from Iran and $2.067 million from other countries.
The country did not export crude oil in January-June. As reported, Ukraine in 2011 imported 5.826 million tonnes of oil for $4.384 billion, in 2012 – 1.544 million tonnes for $1.233 billion, in 2013 – 761,058 tonnes for $630.282 million, in 2014 – 178,613 tonnes for $146.533 million, in 2015 – 248,158 tonnes for $89.039 million, in 2016 – 515,954 tonnes for $173.835 million, in 2017 – 1.013 million tonnes of oil for $442.219 million.
Ukraine and Azerbaijan at a meeting of the bilateral working group for energy issues on June 14 in Baku discussed delivery of oil from Azerbaijan to Ukrainian and European oil refineries, the press service of Ukraine’s Energy and Coal Industry Ministry has reported. “The sides discussed the state of the implementation of a project to supply various types of oil to Ukrainian oil refineries and to the countries of the Central and Eastern Europe,” the ministry said.
The involvement of Ukraine to the implementation of the Southern Gas Corridor project was also discussed.
As reported, Ukraine increased imports of crude oil (foreign trade code 2709) by 36.8% or 102,260 tonnes in January-May 2018 year-over-year, to 380,196 tonnes.
The State Fiscal Service reported that oil for $205.489 million was imported, which is 66.8% more than in January-May 2017 ($123.194 million).
Ukraine in January-May 2018 imported crude oil for $194.853 million from Azerbaijan, $7.176 million from Algeria, $1.844 million from Iran and $1.616 million from other countries.
Ukrainian President Petro Poroshenko has signed a bill deregulating the license issue in the oil and gas production sphere.
According to a posting on the website of the Verkhovna Rada, the signed document was returned to the parliament on March 29.
The law permits the use of the servitude tool for the construction of oil and gas production facilities and pipelines (without changing the purpose of land use).
In addition, the need to obtain a patented mining claim is eliminated. Oil and gas production facilities are removed from the list of facilities of town-planning activity. The obligatory introduction of deposits to research, industrial and commercial development is canceled by the decision of the Ministry of Energy and Coal Industry.
The document gives the right to oil and gas producers after the completion of the period of research and industrial development of deposits to use land parcels on the basis of an agreement with the owner of the land parcels until the purpose of land use is changed and documents for the right to use land are registered (now companies are obliged to stop production for the period of processing documents).
The removal and transfer of soil for further drilling can be carried out without special permission on the basis of a detailed land management project.
The law grants deposit users the right to use their geological information without agreeing them with authorities. In addition, it is proposed to expand the range of entities that can conduct a geological and economic assessment of oil and gas reserves (now this right is owned exclusively by the State Commission of Ukraine for Mineral Reserves).
As reported, the Verkhovna Rada adopted on March 1 at the second reading and in general bill No. 3096-d, which deregulates the license issue in the oil and gas production sphere.
JKX Oil&Gas Plc with assets in Ukraine saw a 52.3% fall in net loss in 2017, to $17.7 million. According to an annual report of the company posted on the website of the London Stock Exchange (LSE), revenue last year grew by 3.5%, to $76.4 million, and operating profit stood at $7.8 million compared with $3.9 million of loss a year ago.
In 2017 group average production was 8,658 barrels of oil equivalent per day (boepd, 14.1% down year-over-year).
Production in Ukraine fell by 12%. Gas production fell by 10%, to 16.7 million cubic feet per day (MMcfd). Oil and gas condensate output decreased 20%, to 719 boepd.
As reported, in Ukraine JKX owns Poltava Petroleum Company.
The largest shareholders of JKX are Eclairs Group of Ihor Kolomoisky and Hennadiy Boholiubov with 27.47% of the shares, Keyhall Holding with 11.42% of the shares, Neptune Invest & Finance Corp with 12.95%, and Russia’s Proxima Capital Group with 19.92% and Interneft Ltd. with 6.6%.