Page 6 - FSUOGM Week 08 2021

FSUOGM COMMENTARY FSUOGM

Naftogaz releases 2021-

2025 strategy

UKRAINE UKRAINE’S national gas company Naftogaz Ukrainians with equal access to quality and
Group released its new corporate strategy that affordable energy products and services,"
will run until 2025 on February 18. Kobolev said.
The plan is based on three business platforms: Below are the main points of the strategy that
Gas Business, B2C/Utility and Low Carbon Naftogaz outlined in its strategy:
Businesses, the company said in a press release.
"Approval of the strategy was made possible Gas business platform
following the adoption of Naftogaz's charter The Group's strategic goals for the development
and ownership policy by the government in of the Gas Business platform deal with the full
October last year and a clear definition of the disclosure of the potential of the natural gas
state shareholder’s expectations regarding the resource base in Ukraine. Until recently, the
Group's work,” the statement said. “Based on portfolio of the new Naftogaz fields – and thus
these expectations, we have developed a clear promising resources that have to ensure the
action plan until 2025, which should increase company's sustainable development and the
the Group's value.” state's self-sufficiency in natural gas – was very
“The basis of this plan is to focus on customer limited. This situation created risks for the stable
needs, intensive exploration and development of l development of the company and would inevi-
new fields, active promotion of the energy mar- tably lead to a drop in production.
kets transformation, attracting professionals and In 2020, thanks to the fruitful co-operation of
partners, acquiring new knowledge and technol- the government and Naftogaz teams, the com-
ogies, entering new businesses and increasing pany received new promising licences.
operational efficiency,” Naftogaz CEO Andriy Obtaining the possibility of exploration and
Kobolev said in the statement. development of these areas will increase the esti-
Today Naftogaz makes most of its money mated production potential of the Group in case
from its gas businesses, such as exploration and of successful exploration 5 times – up to 600bn
production, trading and retail. cubic metres.
At the same time, the portfolio of other To fully realise this potential, Naftogaz must
businesses needs to be optimised and requires invest $20-25bn, of which about $7bn will be
investment in efficiency and growth, Naftogaz within the first 5 years (until 2025).
said. To fully implement the announced strategy, To finance its most ambitious projects, Naf-
Naftogaz will focus on developing key strategic togaz plans to use the equity model. It stipulates
business platforms and reducing its presence in that the Naftogaz Group conducts exploration
others. work independently, and if the first stage suc-
“The group has every opportunity to become ceeds, engages a partner to participate in financ-
a full-fledged vertically integrated company ing the development and allocation of risks.
working directly with end-users. This for- In the 5-year perspective, such efforts will
mat allows us to offer quality services at the allow the Naftogaz Group to stop declining
best prices, promote competition and provide reserves and reach a replacement ratio of 100%

P6 www. NEWSBASE .com Week 08 24•February•2021