Future Opportunities for U.S. / International Exporters and Investors

Total Page:16

File Type:pdf, Size:1020Kb

Future Opportunities for U.S. / International Exporters and Investors UKRAINIAN UPSTREAM FUTURE OPPORTUNITIES FOR U.S. / INTERNATIONAL EXPORTERS AND INVESTORS NEW ORLEANS, LA Copyright © 2019 Exploration & Production Ltd GENNADII KOBAL EU & UKRAINE EUROPE UKRAINE Copyright © 2019 Exploration & Production Ltd OIL&GAS REGION OF UKRAINE KYIV Copyright © 2019 Exploration & Production Ltd REGIONAL STRUCTURE OF PRODUCTION Copyright © 2019 Exploration & Production Ltd PRODUCTION Natural Gas Production Oil Production in Ukraine, in Ukraine, 2012-2019*, BCM 2012-2019*, million ton Copyright © 2019 Exploration & Production Ltd OIL&GAS INDUSTRY Gas Production in Ukraine 2010-2018, BCM Gas production in Ukraine remains stable at the same level - 20-21 BCM / year. In 2019 for the first time there was a re- duction in production over the last 5 years The share of private producers is growing and in August 2019 reached 23% Oil & Condensate Production in 2010-2015, Million ton Oil & Condensate production has been growing for the second year in a row, and this year it will yield 2.4 million ton. This is the highest production output during the last 4 years. Most to the nation’s produc- tion increase was contributed by Ukrnafta and private producers. Copyright © 2019 Exploration & Production Ltd OIL&GAS INDUSTRY Gas Production UGV Oil&Condensate Production UGV Since 2016, UGV has been steadily increasing natural gas production. In 2019, natural gas production will slightly drop for the first time over the years. Gas Production UKRNAFTA Oil Production UKRNAFTA Ukrnafta suc- cessfully stabi- lized their natural gas production in 2018, and now is increasing their oil production. Copyright © 2019 Exploration & Production Ltd OIL&GAS INDUSTRY The largest production increase among private companies in 2018 was shown by UNB, 37% more than in 2017. UNB’s oil production increased by 69%, and totaled 72,000 ton. Last year four new wells were commissioned. Burisma Group, the second largest privately-owned com- pany, produced nearly 1 BCM in 2018. This company is commissioning 20 new wells by the end of 2019. Burisma’s drilling contractors include the two leading private drilling companies: Poltava Drilling Com- pany and Ukrburservice. The largest natural gas production company during the last 5 years remains DTEK Naftogaz, which accounted for almost 40% share in private gas production of Ukraine. ZakhidNadraServis Group is the leading The company has further potential to increase its natural private producer in the Western Ukraine gas production Copyright © 2019 Exploration & Production Ltd DRILLING MARKET In 2019, 18 drilling companies operate in Drilling Volumes in 2008-2018, forecast until 2022, th meters Ukraine. The total drilling&workover fleet is 130 rigs, of which only 80 rigs are for drilling. Over the last 3 years, private drilling companies have expanded their fleets with additional 8 heavy drilling rigs: Ukrburservice – 2 rigs, PBC - 3 rigs, SMS – 1 rig, Goryzonty – 1 rig, and Energofinance – 1 rig. Ukrgasvydobuvannia has already The 8 Ukrainian drilling companies operate modern rigs (drilling at received 12 out of 20 drilling rigs 3000-6000 m) bought from international rig manufacturers include: with a capacity of 450 tons 1. Poltava Drilling Company 5. Region 2. Ukrburservice 6. DC Gorizonty (2 rigs from Bentec + 10 rigs from 3. Specmekhservice (SMS) 7. Naftogazburinnya Honghua) 4. Energofinance 8. UGV Copyright © 2019 Exploration & Production Ltd UGV DRILLING, TH METERS Copyright © 2019 Exploration & Production Ltd DRILLING MARKET Foreign drilling companies in Ukraine, the number of drilling rigs 320-450 tons The 4 interantional drilling contractors operating their 320-450 ton drilling rigs in Ukraine include: 1. EXALO (Poland) Engineering (China) 2. Crosco (Croatia) 4. Belorusneft (Belorus) 3. Xin Jiang Beiken Energy Maximum drilling depths by foreign companies in Ukraine in 2018, m Beiken drills for UGV, Crosco drills for PPC EXALO drills for Cadogan Petroleum Belorusneft drills for DTEK Oil&Gas. Copyright © 2019 Exploration & Production Ltd DRILLING MARKET Drilling Cost Breakdowns % Cost Breakdown of Services for Cost Breakdown of Services for Drilling 3000m-5000m Deep Wells ,% Drilling over 5000m Deep Wells,% Cost Benchmark for Drilling VS Services,% Copyright © 2019 Exploration & Production Ltd COILED TUBING Number of Coiled Tubing Operation for Year Service Price of Tender, Cost per one Opera- Number of Number of Coiled Tubing OperationUGV in 2018 for-2019 UGV in 2018-2019 Company $ thousand tion, $ thousand Operation 2018 Tacrom Ukraine 1 287 76 17 DC Goryzonty; 37 Tacrom Ukraine 1 632 74 22 Tacrom Ukraine; Tacrom Ukraine 1 632 74 22 178 Service Oil 1 852 74 25 Burova Burova Tekhnika 1 779 71 25 UGV Budget for Tekhnika; 2019 DC Goryzonty 2 800 76 37 2018 Coiled 103 Tacrom Ukraine 3 104 80 39 Tacrom Ukraine 3 040 78 39 Tubing Operations Tacrom Ukraine 3 140 81 39 was $ 8.2 million, Burova Tekhnika 3 104 80 39 for 2019 Coiled Burova Tekhnika 3 036 78 39 Service Oil 2 936 75 39 Tubing Operations Service Oil; Service Oil 3 108 80 39 - $ 24.3million. 103 The average cost of one coiling operation for UGV 2018-2019, UAH thousand Copyright © 2019 Exploration & Production Ltd HYDRAULIC FRACTURING Company 2016 2017 2018 2019 HF Operations in Ukraine UGV 16 101 173 300 UKRNAFTA 0 0 17 15 Burisma 0 0 3 5 PPC 0 4 0 0 Ukr-Az-Oil 0 0 1 0 Cost of the HF Operation for UGV in 2018, min-max, th UAH During 2016-2018 more than 300 hydraulic fracturing operations were performed in Ukraine. Including nearly 190 hydraulic fracturing operations in 2018. The leader in using hydraulic fracturing operations is the UGV (about 170 frac jobs per year). Ukrnafta has its own hydraulic fracturing fleet, and in 2018 conducted 17 hydraulic fracturing operations. Copyright © 2019 Exploration & Production Ltd NATURAL GAS MARKETOF UKRAINE: PRODUCTION, IMPORT & PRICES Copyright © 2019 Exploration & Production Ltd NATURAL GAS MARKET BALANCE Copyright © 2019 Exploration & Production Ltd STRUCTURE OF CONSUMPTION IN 2018, BCM Copyright © 2019 Exploration & Production Ltd CONSUMPTION BY INDUSTRY, BCM Copyright © 2019 Exploration & Production Ltd NATURAL GAS PRICES IN UKRAINE IN 2018 - 2019, UAH PER 1,000 M3 Copyright © 2019 Exploration & Production Ltd IMPORT GAS PRICES US$ PER 1,000 M3 Copyright © 2019 Exploration & Production Ltd INFORMATION WEEKLY #40 (177) MONTHLY Welcome to Ukraine! September, 2019 September 30 – October 6, 2019 Carpathian Oil & Gas Conference 2020 - Lviv, May - 2020 - ditions previously agreed. Prime Minister of DAILY GAS Odesa Offshore Conference 2020 - Odesa, September - Ukraine Oleksiy Honcharuk noted that the 3 Жовтня 2019 loss of investor confidence would be the worst that could ever happen. In turn, Min ister of Energy and Environment Oleksiy Or- zhel noted that his Ministry's position was to keep the tax regime unchanged forAverage the up monthly quotation of oil Brent (ICE Index), $/b coming 5 years. The Cabinet of Ministers of Ukraine plans to maximize transparency with active use of online auctions as incentive to attract inves- territory of Ukraine after 2019 was also an - Oil and Gas Productiontors to hydrocarbon production projects in nounced to be held on October 28. Overview, August 2019Ukraine. According -to Honcharuk, ВнутрішнійUkraine ринок. З наближенням кінця тижня активність Ціна на ресурс жовтня в Україні, грн/тис куб м Another important event was the transition of is gasstriving produc to attract more investors,учасників but on на газовому ринку України знизилася. Через різ - - Ukrtransgas to the determination ofAfter price for the change of politicaland powerpolitical oil - mutuallyany favourable terms both to Ukraine natural gas on intraday basis insteadin Ukraine, of the the gas industry is turbu- of ке зростання цін на хабах сьогодні, більшість українських and foreign investors. The Minister of Energy monthly one, as it was before. The purchaseTraditionally, трейдерів зайняли вичікувальну позицію. «Ринок завмер в lent. very sensitive to - and Environment Oleksiy Orzhel plans to use - price and the marginal purchase / sale price tion is After an absolute- rebootmarketing technologiesочікуванні, to attract foreign всі inчекають- якоїсь більш довгострокової тенден - caps on natural gas will be used to further changes. vestors to Ukraine's fuelції щодоand energy зростання market. чи падіння цін у Європі, оскільки ми вже determine the payment for imbalances and In a private conversation,бачили Primeяк одного Minister дня ціни різко падають, а потім наступно will be published daily in thepolitical user's account power in Ukraine, similar - Oleksiy Honcharuk- Average told ExPro monthly that the Cabquotation gas hub in GPL, €/MWh on the Information Platformchanges starting Octoberwill come to the production го дня так само різко зростають» - прокоментував ситуацію News Review inet plans to attract investors to the Black 1, 2019. The last monthly marginal price for один з трейдерів. Last week, UGTS Operator LLC applied for industry. Sea shelf. However, according to Honcharuk, the purchase of natural gasfirst for September major step that can contribute certification as a gas transmission sys The this shouldПротягом be in the form дня of продавці auctions, not газу in в Україні підвищили власні ціни 2019 was 5 502.54 UAH / Mm3. The margin tem operator to the National Commission to a dramatic deterioration Currentlyof the situ thethe formна of ресурс a Product жовтня Sharing близько Agreement. на In 100 - 200 грн/тис куб м і на al selling price was 4 502.08 UAH / Mm3. - for State Regulation of Energy and Utilities addition,a the Dolphin shelf hydrocarbon rich - Also, last week theyation made in athe number gas of market im is the review прикінці дня ціни на ресурс жовтня коливалися в діапазоні (NCREU). The certification should be com fields should be divided into 4 separate lots. portant political ofstatements the current regarding rent hydro rates. provides for 5 000 – 5 200 грн/тис куб м. Діапазон цін на ресурс листопада Ціна на газ в ПСГ в Україні, грн/тис куб м pleted by the end of December, so Ukrtrans- - carbon production.Parliament On August has30, a People'sreceived for the review залишається широким.
Recommended publications
  • Naftogaz of Ukraine 2014 Annual Report
    NAFTOGAZ OF UKRAINE 2014 ANNUAL REPORT New Ukraine Europe New rules Market Transparency Naftogaz Reform Europe New Ukraine Europe New rules Naftogaz Market Europe New UkraineNew Transparency Reform Ukraine Naftogaz New rules Europe Naftogaz New Ukraine Market Naftogaz Europe New Ukraine Reform Transparency Naftogaz EuropeReform Europe Naftogaz New Ukraine New rules Transparency New rules Transparency New rules Europe Transparency New Ukraine Naftogaz New rules Europe Market Reform Reform Naftogaz Market Reform TransparencyNew rules Reform Europe New rules Market Reform Transparency New Ukraine Transparency Transparency Naftogaz New Ukraine Naftogaz New rules Reform NaftogazTransparency Market New rules Reform Europe Reform Naftogaz New rules Europe Naftogaz New Ukraine Transparency Market Transparency New rules Naftogaz Transparency Reform Europe New rules Market New Ukraine New Ukraine Transparency New rules New rules Market Market New Ukraine Europe Transparency Reform Europe New Ukraine New Ukraine Naftogaz Transparency New rules Reform New rules Naftogaz New rules New Ukraine Reform Market Europe New rules ReformNaftogaz Transparency Europe Reform Naftogaz Transparency Reform MarketNaftogaz Reform Naftogaz New rules Naftogaz New Ukraine Market Market Naftogaz Transparency Transparency Reform Europe Transparency New rules New rules New rules Reform New Ukraine Market Transparency New rules Naftogaz Market Europe Changing for the future Ukraine’s gas transmission Entry capacity: EUROPE’S LARGEST GAS MARKETS, 2014, bcm NAFTOGAZ AT A
    [Show full text]
  • The Ukrainian Weekly, 2020
    INSIDE: l State in a Smartphone app is launched – page 3 l ‘Peripheral Visions’ exhibit by the Yurchuks – page 11 l Community: Alberta, New York, New Jersey – pages 16-17 THEPublished U by theKRAINIAN Ukrainian National Association, Inc., celebrating W its 125th anniversaryEEKLY Vol. LXXXVIII No. 7 THE UKRAINIAN WEEKLY SUNDAY, FEBRUARY 16, 2020 $2.00 NEWS ANALYSIS Yermak replaces Bohdan Zelenskyy, with Yermak in new role, as the head of Presidential Office emphasizes continuity in foreign policy by Bohdan Nahaylo understood that it is necessary to change the Minsk accords of 2014-2015 because KYIV – When President Volodymyr they are not working, and he sensed that Zelenskyy fired the controversial head of even “Russia is preparing to think this his Presidential Office, Andriy Bohdan, and over.” This recognition of “Minsk flexibility” replaced him with Andriy Yermak, a non- was a step forward. In his view, the staff close adviser who has become increas- achieve ment of peace remains the goal, for ingly influential in recent months, the move in the end it will be not about winners and suggested a change in style and approach in losers but “a victory for everyone.” the domestic sphere. But the appointment Turning from the Donbas to Crimea, also reaffirmed Mr. Yermak’s position as the President Zelenskyy acknowledged that Ukrainian president’s chief negotiator with this issue was “even more complicated.” He the Kremlin and his stewardship over added cryptically: “But we are also working Ukraine’s foreign policy in general. on it. I cannot say more so far.” On the same day as the personnel The following day, at his first press con- change in Kyiv, Moscow confirmed that ference as head of the Presidential Office, or Dmitry Kozak had replaced Vladyslav chief of staff, Mr.
    [Show full text]
  • The Ukrainian Weekly 2012, No.37
    www.ukrweekly.com INSIDE: l Exclusive interview with Bishop Borys Gudziak – page 3 l Ukraine’s achievements at the Paralympic Games – page 9 l Communities celebrate Ukraine’s Independence Day – page 11 THEPublished U by theKRAINIAN Ukrainian National Association Inc., a fraternal W non-profit associationEEKLY Vol. LXXX No. 37 THE UKRAINIAN WEEKLY SUNDAY, SEPTEMBER 9, 2012 $1/$2 in Ukraine Journalists protest Stryiskyi Park Collegium censorship in Ukraine PARSIPPANY, N.J. – President Viktor Yanukovych’s on UCU campus is blessed September 3 speech to the World Newspaper Congress convening in Kyiv was interrupted by about a dozen journalists protesting media censorship in Ukraine. Mr. Yanukovych did not react as the journalists rose from their seats and held up signs reading “Stop cen- sorship” and “Media oligarchs serve the authorities,” but security guards violently ripped the signs out of the hands of some protesters. In his speech, Mr. Yanukovych vowed to uphold democratic principles and media freedoms, stating, “The main task of the government in the media sphere, as I have set it, is to create conditions when free press can develop freely and be independent of any kind of control.” Mr. Yanukovych called on journalists “to maintain a high level of ethical standards and uphold the princi- ples of being objective and politically biased.” He Zenon Zawada apparently meant to say the opposite: unbiased. The Stryiskyi Park Collegium of the Ukrainian Catholic University will consist of a residential wing (left), already According to a report by the Associated Press, in completed, and the academic portion, to be completed by next year.
    [Show full text]
  • REPORT NAFTOGAZ FINANCIAL INDICATORS NAFTOGAZ GROUP NET CONTRIBUTIONS to the STATE BUDGET 2016 2016, UAH Billion in 20142016, UAH BILLION
    Ukrnafta (50%+1 share) Oil and gas production Naftogaz of Ukraine Ukrtransnafta (100%) NAFTOGAZ Headquarters, trading Oil transmission and storage Ukrgazvydobuvannya (100%) Ukrtatnafta (43 %) GROUP Oil and gas upstream GROUP Oil refining and storage Ukrtransgaz (100%) Petrosannan Company (JV, Egypt) STRUCTURE Oil and gas production Gas transmission and storage OIL Ukrspetstransgaz (100%) Zakordonnaftogaz (100%) LHG railway transportation GAS 6% Oil and gas production revenues Gas of Ukraine (100%) Retail supply until 2012 92% revenues OTHER Ukravtogaz (100%) Naukanaftogaz (100%) CNG retail (stations) 2% Research and development revenues Naftogaz Trading Europe S.A. (100%) (former Naftogaz Overseas S.A.) Vuhlesyntezgaz of Ukraine (100%) Development of gas replacement projects Trading (Geneva) Kirovohradgaz (51%) LIKVO (100%) Gas distribution and supply Prevention of emergencies Chornomornaftogaz* (100%) Naftogazbezpeka (100%) Oil and gas upstream Security services Ukrnaftogazkomplekt (100%) Supply of equipment Naftogazobslugovuvannia (100%) Services Gas value chain: 92% of the group revenues Oil value chain: 6 % of the group revenues EXPLORATION AND TRANSMISSION AND MARKETING AND EXPLORATION AND TRANSMISSION AND IMPORT DISTRIBUTION REFINING MARKETING AND RETAIL PRODUCTION STORAGE SUPPLY PRODUCTION STORAGE UKRGAZVYDOBUVANNYA NAFTOGAZ (HQ) UKRTRANSGAZ 1.5% NAFTOGAZ UKRNAFTA UKRTRANSNAFTA UKRTATNAFTA UKRNAFTA natural monopoly Naftogaz share in the segment (50 % + 1 share) natural monopoly (43 %) The biggest retail chain in Ukraine: 14.6 bcm
    [Show full text]
  • The Ukrainian Weekly, 2021
    INSIDE: l Kobzarska Sitch bandura camp update – page 4 l Iskra Ukrainian Dance Academy holds in-person recital – page 8 l Ukraine national soccer team fan guide for Euro championship – page 9 THEPublished U by theKRAINIAN Ukrainian National Association Inc., a fraternal Wnon-profit associationEEKLY Vol. LXXXIX No. 24 THE UKRAINIAN WEEKLY SUNDAY, JUNE 13, 2021 $2.00 In show of support, Biden invites Ukraine’s Zelenskyy frustrated over lack of support Zelenskyy to the White House from key allies in face of Russian aggression RFE/RL stop in Geneva for a face-to-face meeting with Russian President Vladimir Putin on Receives White House invitation for July U.S. President Joe Biden has invited June 16. Ukrainian President Volodymyr Zelenskyy The call comes amid some frustration in to visit the White House this summer in a Washington and Kyiv about the bilateral show of support for the Eastern European relationship. country. Washington has been dismayed by man- Mr. Biden extended the invitation during agement changes at Naftogaz, the a phone call with Mr. Zelenskyy on June 7, Ukrainian state-owned energy company at national-security adviser Jake Sullivan said the heart of the country’s largest corrup- during a press conference. It was the sec- tion scandals, as well as slow progress on ond call between the leaders since Mr. reform. Biden took office in January. Kyiv, on the other hand, has publicly In a tweet after the call, Mr. Zelenskyy expressed disappointment that Mr. Biden said he “looked forward” to the visit and chose to meet one-on-one with Mr.
    [Show full text]
  • 12 -13 October 2016, Kyiv
    The 2nd Ukrainian Gas Forum 12th-13th October 2016, Kyiv Ukraine’s new gas market: a counterfeit or the real thing? PROGRAM General sponsors Sponsors 12 October Time Topic Speakers 900–945 Registration Part I – Taking stock of the past year & Looking to the future Opening remarks 945–950 Introduction Leonid Unigovskyi / NGBI Oleksandr Chalyi / Grant Thornton Ukraine 950–1000 Appeal to the gas community Prime-Minister of Ukraine / Volodymyr Groysman (tbc) 1000–1010 Working towards a comprehensive reform of the Hugues Mingarelli / Ambassador of Ukrainian gas sector European Union to Ukraine, Head of the EU Delegation to Ukraine Key reports* 1010–1020 Natural Gas Market of Ukraine: what has been Oleksandr Chalyi / Grant Thornton done and what has to be done? - view of experts Ukraine Leonid Unigovskyi / NGBI 1020–1155 Natural Gas Market of Ukraine: what has been Vitaliy Radchenko / CMS Cameron done and what has to be done? - view of McKenna practitioners Yaroslav Mudryy / Energy Resources of Ukraine (ERU) Willem Coppoolse / Engie Ihor Prokopiv / UkrTransGaz Oleksandr Prytyka / Regional Gas Company (RGC) Mariya Yakovleva / Gas Market Liberalization Members Union Philip Vorobyov / JKX Oil&Gas Roman Opimakh / Association of Gas Producers of Ukraine (AGPU) Oleh Prokhorenko / UkrGazVydobuvannya Alastair McBain / Arawak Energy International 1155–1210 COFFEE BREAK * Reports of the Part I – not more than 10 minutes. 1 12 October Time Topic Speakers Part II – Focus on the Gas Market Law / moderated by Inna Novak Key reports* 1210–1225 Energy reforms
    [Show full text]
  • The Ukrainian Weekly, 2021
    Part 1 of THE YEAR IN REVIEW pages 7-15 THE UKRAINIAN WEEKLY Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXXXIX No. 3 THE UKRAINIAN WEEKLY SUNDAY, JANUARY 17, 2021 $2.00 New twist in Sheremet murder case as audio U.S. sanctions more Ukrainians suspected recording allegedly implicates Belarusian KGB of interfering in 2020 presidential election by Mark Raczkiewycz repeated public statements to advance dis- information narratives that U.S. govern- KYIV – The U.S. Treasury Department on ment officials have engaged in corrupt January 11 sanctioned several Ukrainian dealings in Ukraine.” individuals and entities linked to a Verkhovna In a separate statement, Secretary of Rada lawmaker that a Washington intelli- State Mike Pompeo said that Mr. Derkach gence agency says is a Russian agent who “has been an active Russian agent for more allegedly attempted to influence the 2020 than a decade, maintaining close connec- U.S. presidential election. tions with Russian intelligence services.” Joining lawmaker and suspected Russian A graduate of the Soviet Union’s KGB agent Andriy Derkach, who does not belong academy, Mr. Derkach was sanctioned in to a political party, on the department’s August for “spreading claims about corrup- “Specially Designated Nationals List” is tion – including through publicising leaked Oleksandr Dubinsky, who leads the party phone calls – to undermine former Vice- Servant of the People. President Biden’s candidacy and the Mr. Dubinsky previously worked for bil- Democratic Party,” Director of the National RFE/RL lionaire oligarch Ihor Kolomoisky’s 1+1 Counterintelligence and Security Center television channel, which provided favor- A sign asking “Who killed Pavlo?” in front of the new memorial to Pavlo Sheremet in (NCSC) William Evanina said in a news Kyiv.
    [Show full text]
  • Annual Report 2018
    ANNUAL REPORT 2018 Changing ourselves – strengthening Ukraine NAFTOGAZ FINANCIAL Integrated Oil midstream Gas domestic Gas RESULTS gas and downstream Gas transit transmission storage Ukrnafta Other UAH billion 137.8 118.4 73.9 72.3 227.5 256.3 36.1 2017 2018 27.6 27.2 27.0 11.3 13.0 1.0 1.8 1.4 1.4 REVENUES 1 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 211.0 189.0 190.0 200.0 162.1 723.1 603.7 96.3 2017 2018 30.2 28.8 21.6 30.0 15.0 18.3 11.0 8.6 ASSETS 2 2017 2018 2017 2018 2017 2018 20172017 20182018 2017 2018 2017 2018 2017 2018 28.0 29.0 41.2 38.6 10.4 6.7 9.3 2017 2018 4.0 2.0 0.9 0.6 NOPLAT 3 0.9 3.2 2.4 1.3 2.7 Net Dividend Tax Capital investments Net cash generated profit payments for 2017 payments (+80%) by operating activities 11.6 29.5 109.1 30.6 71.6 1 includes elimination of UAH 33.3 billion for operations within the group 2 unallocated assets - UAH 25.3 billion 3 adjusted operating result net of income taxes 2018 INTRODUCTION Address of supervisory board chair ��������������������������������������������������������������������6 CEO's address ������������������������������������������������������������������������������������������������������8 MARKET AND REFORMS Macroenvironment: a year of big challenges ���������������������������������������������������12 Global gas market ���������������������������������������������������������������������������������������������16 Global oil market �����������������������������������������������������������������������������������������������30 Unbundling ��������������������������������������������������������������������������������������������������������36
    [Show full text]
  • Still Above the Law Brawling with Immunity and Impunity
    March 27, 2015, Vol. 2, Issue 1 Still Above The Law Brawling with immunity and impunity Editors’ Note Contents 4 Naftogaz vs. Gazprom: Battle of The Kyiv Post’s Legal Quarterly is now in its second year and still evolving based on your sug- giants gestions. So please keep new and better ideas coming our way! We launched this supplement to give readers a legal snapshot of the great political and 6 Many war-displaced Ukrainians business issues of the day. Ukraine’s legal and regulatory environment is changing rapidly in legal limbo and we see our role as keeping readers up to speed with the debates taking place. This is not meant to be an “insiders’ digest” written by and for lawyers. Rather, the Kyiv Post 8 Leonid Antonenko on how NBU will make banks accountable has found that Ukraine’s dynamic and competitive legal community is often the best – and sometimes the only – place to go for expert advice and commentary. Besides staying on top 10 Alternative energy market stung of all sides of the issues, many in Ukraine’s legal community also excel at breaking down with unfavorable rates the importance of complicated issues in easily understandable ways to the public (includ- ing journalists!). 11 No celebration yet, despite new We want to call your attention to a few of the best stories in this edition. law on business deregulation Everyone loves rankings and top lists. So do we. That’s why we asked Yurydychna Gazeta to share their latest survey of the top 100 lawyers in Ukraine.
    [Show full text]
  • Gas Storage 0.4 2
    HISTORICAL VICTORY AND THE BEGINNING OF TRANSFORMATION ANNUAL REPORT 2017 NAFTOGAZ FINANCIAL RESULTS 2017 DYNAMICS AND STRUCTURE OF THE GROUP'S REVENUE, UAH bn net cash flows from adjusted operating result net BY BUSINESSES operating activities (ОСF) of income taxes (NOPLAT) UAH bn Gas production, import and sales to RSC's for 11.2 resale to households 16.7 1. Gas production, import and sales to RSC's for resale to households – 54.3/48.9 2. Gas production, imports and supply to MHE's for the needs of households – 22.8/18.9 227.5 3. Gas production, imports and supply to other customers under PSO – 7.8/4.6 Gas transit 38.3 2017 4. Gas imports and supply to other customers outside PSO – 4.1/12.9 11.9 5.9 Oil and gas condensate sales 192.8 4.6 2016 3 4 Gas production, imports and supply to MHE's for 1.2 the needs of households 3.2 Petroleum products sales 1.6 2.8 Gas domestic transmission 3 89.0 Oil transit 1.4 1.6 and storage Gas production, imports 2.3 and supply to other customers under PSO 1.3 2 Gas business 1 2 Gas imports and supply to other customers 2.8 outside PSO 0.4 25.0 -4.9 Gas domestic transmission 14.8 0.003 85.3 1 Oil domestic transmission -0.2 -0.6 1. Gas domestic transmission – 24.8 /14.7 Gas storage 0.4 2. Gas storage – 0.2 /0.1 -0.3 Other 0.9 -0.1 Oil and petroleum products transmission GROUP’S NET PROFIT RECONCILIATION FOR 2017 and sales 73.9 UAH bn Without positive effect of Gas Transit 4 Arbitration, the group would incur net loss 3 of UAH 7.4 bn* for 2017 Gas transit 34.8 12.6 9.1 60.0 1 41.5 39.4 -6.7 28.0 2 -3.4 -13.1 -0.6 1.
    [Show full text]
  • 2015 Annual Public Report
    2015 Annual Report A Mission Committed to Ukraine’s Democracy The U.S.-Ukraine Foundation 1660 L Street NW - Suite 1000 • Washington, DC 20036 Telephone: 202-524-6555 • Fax: 202-280-1989 • E-mail: [email protected] Websites: www.usukraine.org ∙ www.traveltoukraine.org Board of Directors Nadia K. McConnell President Jack I. Heller Iryna Kurowyckyj William Green Miller Jim O’Beirne Renata A. Zajac Board of Advisors Alan Cohen Bohdan A. Futey Ihor Gawdiak Tom Gittins John Jeanetta Ann Olsen Schodde E. Morgan Williams Charles Wise Tamara Woroby Cover Page Note: The U.S.-Ukraine Foundation and United Help Ukraine held a memorial march on Friday, July 17, 2015 in Washington, DC, to mark the one-year anniversary of Malaysian Airline Flight MH17's crash in Ukraine. USUF Summer Interns, Igor Herbey and Shane Suksangium, hold the banner in Lafayette Park. THE MISSION U.S.-Ukraine Foundation … is a publicly supported 501(c)(3), not-for- profit non-governmental organization established in 1991 to support democracy, a free market, and human rights for Ukraine. The Foundation, headquartered in Washington, creates and sustains channels of communication between the United States and Ukraine, in order to build peace and prosperity through an exchange of information. The Foundation is dedicated to strengthening the mutual objectives of the U.S. and Ukraine, advancing Ukraine as a cornerstone of regional stability and as a full partner in the community of nations. The work of the Foundation, over the course of 24 years, has been significant in the promotion of democratic and economic reforms in Ukraine.
    [Show full text]
  • Setting It Right
    SETTING IT RIGHT ANNUAL REPORT 2015 FINANCIAL RESULTS OF NAFTOGAZ IN 2015 2015, UAH billion See Management review of financial results on p.161 Profit from OPERATING REVENUES sales of UGV gas for the needs of AND RESULTS BY SEGMENT households UAH billion 52.4% Profit from 21.7 non-regulated 8.4 UAH 68.7 billion other segments Loss from Gas transmission and oil business 3.9 sales of KEY FACTORS imported gas non-regulated Profit from for the needs CONTRIBUTING -57.3 regulated gas sales of households to industrial TO NET LOSS consumers -30.5 for 2015, UAH billion 4.1 Profit from gas transit regulated 22.6 Gross profit -0.8 other** Net foreign 47.6% 8.5 UAH 62.5 billion Results exchange loss Gas trading, by segment production and storage **Undistributed revenues/expenses and elimination -19.9 as well as benefits/(losses) from income tax Finance costs -10.9 Provisions for litigations and other provisions -7.9 -36.3 Net loss Other net costs -6.1 STRUCTURE OF THE GROUP’S REVENUES RESULTS OF GAS CHANGES OF THE GROUP’S OPERATING REVENUES AND ASSETS BY SEGMENT TRADING SEGMENT UAH billion AND ASSETS DURING 2013-2015 UAH billion UAH billion Gas Gas Revenue Cost of sales Gross loss Gross profit 140 600 120 139.7 475 457.1 586.4 100 350 Gross loss from Gross profit from 80 70.1 225 192.1 gas sales for the gas sales to other 60 67.5 100 needs of households segments Oil business Heat production Oil* 18.9 83.3 17.0 Oil* 7.6 6.1 for other 52 and other 7.0 1.5 14.5 16.1 44 51.9 segments 12.0 36 7.4 Heat 9.5 28 27.3 7.5 24 66.9 Gas trading 38.7 production
    [Show full text]