Weekly news digest September 29 – October 05, 2014


Now we have a responsible and defining period in oil and gas industry in Ukraine. Last week the Deputy Minister of Finance Denys Fudashkin and the Head of Tax Service Igor Belous announced main planned amendments to the State Budget for 2015. Unfortunatelly, they are planning to keep the same rate of the fee for subsoil use for oil and gas production for 2015.

Currently, the Draft Budget is being submitted to the Parliament for review, however, due to the elections it will be voted by other parliamentarians and moreover, it may turn out that the creators of the 2015 budget will not keep their sits till the voting for this document if Verkhovna Rada.

One more important event of the last week was international conference Practical issues of hydraulic fracturing. It gathered about 50 specialists in oil and gas industry and proved that despite general situation in the industry the interest to nee technologies is not decreasing.




Ukrainian companies
Gas production for 8 months of 2014 increased by 2.5%
Oil production for 8 months of 2014 decreased by 5.4%, gas condensate production — by 15%
Ukrnafta accumulated debts for payments for subsoil use for half a billion UAH
The Cabinet of Ministers increased the capitalization of Naftogaz by 22.4 billion UAH
Ukrgazvydobuvannya will adjust winter diesel fuel production
Ukrgazdobycha completed testing at a super-deep well in Poltava region
Ukrgazdobycha is going to increase gas production with a help of hydraulic fracturing
The results of the international conference “On practical issues of hydraulic fracturing” organized by oil and gas consulting center Newfolk in Kiev
Foreign companies
The Head of Naftogaz held negotiations with the Norwegian Statoil
ExxonMobil shut 90% of the projects with Rosneft due to sanctions
Shell is changing its plans for the development of oil fields in Russia due to sanctions
Production by Rosneft is falling third month in a row
Sergey Beym is entrusted to manage the assets of the Ukrainian
Chornomornaftogaz in the annexed Crimea
LUKOIL and Total are discussing cooperation after sanctions
The Ukrainian UGS are filled by almost 52%
Gas reserves in Ukraine’s UGS increased up to 16.6 BCM
Electricity exports from Ukraine for 8 months of 2014 decreased by 4.1%
Gas imports to Ukraine decreased by 86% in August
The Head of Ukrtransgaz again is removed from the company’s management
Gas consumption for 8 months of 2014 reduced by 15.5%, imports — by 1.2%, transit — by 14.9%
Politics and the world
Hydraulic fracturing was held in Kiev
Controversial compromise: the results of Berlin gas talks
The General Prosecutor’s Office is investigating the activity of officials of Ukrnafta and Ukrgazdobycha
Gas supply from Poland to Ukraine resumed after a short-term repair