Wednesday, September 30, 2020
Home Finance & Regulations Naftogaz creates the E&P division based on international best practices

Naftogaz creates the E&P division based on international best practices

Ukraine’s oil and gas company Naftogaz announced the creation of the Exploration and Production division that will be responsible for the exploration and production of natural gas and liquid hydrocarbons, effective investments and the growth of proven reserves in the Naftogaz portfolio.

“Naftogaz is committed to becoming a strong company with sound corporate governance and to carrying out activities according to international standards,” the Chief Operating Officer of Naftogaz group, Otto Waterlander noted. “The separation of hydrocarbon production and sales activities is among the best practices of international oil and gas companies. This is a proven model that has demonstrated its effectiveness worldwide. I am sure it will prove its effectiveness at Naftogaz. There will be two teams and two leaders within the group. Each will focus on their domain. By doing so, we want to increase efficiency.”

At the same time, the company dissolved the Integrated Gas Business division due to the need to adapt structures to new market conditions and focus on gas sales to end consumers after the cancellation of Public Service Obligations (PSO) from 1 July 2020.

“I am sure that these changes will allow us to successfully fulfil the tasks assigned to the company and once again prove that Naftogaz group has been and remains the change leader in the Ukrainian SOE sector,” commented Naftogaz CEO Andriy Kobolyev.

The Exploration and Production division will be headed by Oleksandr Romanyuk, who had previously held the position of First Deputy CEO at Ukrgasvydobuvannya, a key upstream asset of Naftogaz. Olena Kobets has been appointed CEO of JSC Ukrgasvydobuvannya.

Most Popular

PKN ORLEN launches tender to acquire all shares in Energa Group

PKN ORLEN announced a tender to buy a minority interest in Energa Group to facilitate further effective integration of the two companies’ assets. PKN ORLEN has offered 1.82 euros per share to acquire a 20 per cent stake.

OMV implements energy-efficiency measures to achieve net-zero operations in refineries

OMV will strive to reduce its carbon intensity in refining by at least 20% by 2025. One factor in achieving net-zero operations is energy-efficiency measures. One such measure is the audit program at the Schwechat Refinery.

Ukraine’s Energoatom and Naftogaz join forces to develop hydrogen capabilities

Energoatom signed a memorandum of understanding with Naftogaz on cooperation in the field of hydrogen technologies, which will only make sense if the hydrogen is produced environmentally friendly.

New emission reduction target makes CEE countries fear a not-so-just transition

The European Commission has decided to increase the 2030 emission reduction target from 40 to 55%. Mrs von der Leyen herself recognised that it would be too much for some and not enough for others and many countries from CEE are considering it unrealistic.