Weekly news digest April 01-06 of 2014

Today’s issue of Oil and gas bulletin is dedicated primarily to the state monopolies NJSC Naftogaz of Ukraine and Ukrgazdobicha. The disastrous financial position of these state companies requires a decisive and, unfortunately, painful reforms of oil and gas industry in the country. Starting from April, the price for Russian import gas increased up to $385.5 per th.cub.m, consequently, the price for industrial consumers increased too – up to 4,020 UAH  per th.cub.m. Starting from May the increase is expected for all categories of population. However, even these measures are unlikely to help the state monopolies to stay up.

Ukrainian companies
The Cabinet of Ministers estimates the deficit of Naftogaz at 37 billion UAH, IMF – at 56 million UAH
Naftogaz will take on the private companies in the gas import market. The players will not mind.
The IPO of Ukrgazdobicha will be held in 2016
Foreign companies
Shell will invest 200 million USD in development of Donetsk - Taratuta
British Regal Petroleum suffered a loss from gas production in Ukraine
Starting from the 1st of April, the gas price for industrial consumers will increase by 29%, for budgetary organizations — by 64%