Weekly news digest August 4-10, 2014


Starting from August, oil and gas industry in Ukraine is operating under new rules; after increase of taxes companies are trying to survive under new conditions. First of all, upstream companies started changingand optimizingits production plans. As if was foreseen, tax increase absorbed all income of producers which was a source of their investments. Losing its shirt, producing companies started talking aboutcutting the investments into production. Decrease of production volumes will also be quite foreseeable in the nearest future and it will complicate the situation in domestic gas market.



Ukrainian companies
The Cabinet of Ministers increased the charter capitalon Naftogazby 63 billion
Ukrgazdobycha PJSC is planning to save annual gas production at Shebelinka gas condensate deposit at the level of 2.4 BCM
Ukrgazdobycha is trying to stabilize gas production
The Cabinet of Ministers dismissed the FirstDeputies Head of Naftogaz
Franchuk is dismissed from the position of the Deputy Head of Naftogaz
Nadra of Ukraine is not going to leave shale projects with Shell and Chevron
Foreign companies
LUKOIL backed down
Serinus Energy will delay the investment program in Ukraine due to taxes growth
Rent increase will have negative impact on the investment program- Misen Energy
Ukrtransgaz started to accept the applications from the private companies to supply gas through Hungary
An alternative energy provides new opportunities for the investors — the State investment project
Ukraine gathered in its storage 14.9 BCM of gas
Politics and the world
Gas production in Russia reduced by 1.7% for seven months of 2014
Russia may delay large-scale projects on oil production due to the sanctions
The Cabinet of Ministers isconceding to the fuel lobbyists
Yatsenyuk proposes to cancel special surcharge for gas