Business news from Ukraine

FLOW ENERGY FROM GREECE INTERESTED IN UKRAINIAN ELECTRONIC OIL AND GAS AUCTIONS

The Greek energy company Flow Energy & Environmental Operations S.A. is interested in Ukrainian electronic oil and gas auctions and is ready to invest up to EUR 1.2 million in hydrocarbon deposits, Ukraine’s State Service of Geology and Subsoil has reported.
According to the service, the energy company got acquainted with the primary and secondary geological information on five fields, auctions for which are scheduled for June 18.
“Our company intends to take part in the next auction. Despite the fact that we are a small company, we are interested in five oil and gas deposits with a total cost of more than EUR 1 million. I hope that this is only the beginning and we will be active participants in the Ukrainian energy market,” the press service said citing the president of the Greek company, Tereza Fokianou.
The service noted the low level of participation of foreign companies in oil and gas auctions, but said they were working to attract foreign investors.

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POLISH COMPANY PLANS TO PARTICIPATE IN TENDER TO DEVELOP OIL AND GAS FIELD IN UKRAINE

The interdepartmental commission organizing and implementing the product sharing agreements (PSA) has received a bid from Poland’s Unimot seeking to participate in a tender to develop the Ivanivske field (Kharkiv region) under PSA, Executive Director of the Association of Gas Producers Roman Opimakh has said on his Facebook page.
“Today [on June 6], the 14th company was registered, which submitted an application for participation in the tender for entering into a PSA for the Ivanivske field. It became the third candidate for this lot, which gives the right to explore and produce fossil fuel in Kharkiv region. This is the Polish concern Unimot selling automotive fuels and such commodities as gas and electricity,” he wrote.
Opimakh said that the procedure of the tender allows the acceptance of applications for participation sent by mail subject to the availability of a mail stamp confirming the sending of the main meeting the deadline – May 28.
He also said that at present, the company has no experience in exploration and production, however, Opimakh said that joint development with some specialized company is not ruled out.
Unimot S.A is an energy company which activities include the import and sale of petroleum products, liquefied natural gas and electricity.
Previously, the company has repeatedly reported about entering the Ukrainian fuel market with the AVIA network of gas stations.

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UKRNAFTA INCREASES PRODUCTION OF OIL BY 6%, GAS BY 13% IN MARCH

PJSC Ukrnafta in March 2019 increased oil and condensate production by 6.4% (7,700 tonnes) compared to March 2018, to 128,800 tonnes, the press service of the company has reported.
Natural gas production increased by 12.9% (11.4 million cubic meters), to 100.1 million cubic meters.
The average daily production, respectively, amounted to 4,200 tonnes of oil and 3.2 million cubic meters of gas.
As reported, according to the non-audited statements, in 2018 Ukrnafta received UAH 6.628 billion of net profit against UAH 101.771 million of profit for 2017.
Last year, the company increased its oil and gas condensate production by 5% compared with 2017, to 1.448 million tonnes. Gas production decreased by 2.3%, to 1.082 billion cubic meters, production of liquefied gas by 5.2%, to 110,000 tonnes.

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SMART ENERGY MULLING PARTICIPATION IN OIL AND GAS ELECTRONIC AUCTIONS

The Smart Energy Group is mulling a possibility of participating in the first electronic oil and gas auction scheduled for March 6, 2019, Smart Energy CEO Sergei Glazunov said at a press conference in Kyiv. “We looked at 10 licenses that are exhibited on March 6. There are several interesting facilities there, and we are now deciding whether to participate in them. We hope that the auctions will be held as expected – transparently and in an understandable way,” Glazunov said.
As reported, on October 24, 2018, a temporary procedure for implementing a pilot project for the introduction of electronic trading in the sale of licenses for the use of subsoil came into force. In accordance with it, the licenses are sold exclusively through electronic bidding.
On December 6, 2018 the State Service for Geology and Mineral Resources put up the first 10 sites for electronic oil and gas auctions. At the second round at the end of January seven more sites were exposed.
The first auction will take place on March 6, 2019.

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UKRNAFTA BOOSTS OIL AND CONDENSATE PRODUCTION BY 4.4%

PJSC Ukrnafta boosted oil and gas condensate production in January 2019 by 4.4% compared to the same period last year, to 128,000 tonnes, while natural gas output grew by 7.4%, to 99 million cubic meters, the company’s press service has said.
“The increase in production is due to repairs to prospective wells and measures to intensify production, including perforating operations with the use of foreign-made systems with increased efficiency,” it said.
The company’s production in February continues to grow it said. So, as of February 14, the average daily production of oil and condensate was 4,200 tonnes vs. 4,100 tonnes in January 2019.
As reported, Ukrnafta in 2018 increased the production of crude oil and gas condensate by 5% (0.069 million tonnes) compared to 2017, to 1.448 million tonnes. Natural gas production in 2018 decreased by 2.3% (0.026 million cubic meters), to 1.082 billion cubic meters, production of liquefied gas fell by 5.2% (6,000 tonnes), to 110,000 tonnes.
Ukrnafta is the largest oil producing company in the country. NJSC Naftogaz Ukrainy owns 50% + one share of Ukrnafta, a group of companies associated with former shareholders of PrivatBank holds about 42% of its shares.

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LARGEST UKRAINIAN OIL PRODUCER PAYS UAH 7.8 BLN OF ROYALTIES

PJSC Ukrnafta in 2018 paid UAH 7.8 billion of royalties to the budgets of all levels, the company’s press service has reported.
The press service said that UAH 389.3 million was paid to the local budgets, including UAH 165 million in Sumy region, UAH 87.4 million in Ivano-Frankivsk region and UAH 62.5 million in Poltava region.
As reported, Ukrnafta in 2018 increased extraction of oil and gas condensate by 5% or 0.069 million tonnes compared with 2017, to 1.448 million tonnes. Gas production in 2018 fell by 2.3% or 0.026 million cubic meters, to 1.082 billion cubic meters, and production of liquefied gas decreased 5.2% or 6,000 tonnes, to 110,000 tonnes.
Ukrnafta is the largest oil producer in the country. National joint-stock company Naftogaz Ukrainy owns 50% and one share of Ukrnafta, and a group of companies associated with former shareholders of PrivatBank – about 42% of the shares.

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