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.