Page 19 - FSUOGM Week 19 2020

FSUOGM
NEWS IN BRIEF
FSUOGM
Dan Brouillette on May 12 by phone, the Russian ministry said in a statement.
“The current state and prospects of the global oil market were discussed during the conversation, as well as the collective measures for its stabilization. The heads of the energy authorities of Russia and the US agreed to continue dialogue,” the statement read.
Ukhta refinery will stop production due to overhaul
The Lukoil-Ukhta refinery in Ukhta has been shut down production on May 12 due to a scheduled overhaul. This is stated in the press service of the enterprise.
“A set of measures has been identified aimed at improving the reliability of equipment, production safety and the environment, ”the enterprise said.
The previous overhaul was carried out at
the plant in 2016 and lasted for one and a half months. The company will continue to ship fuel to retail chains and to meet regional demand, using its commercial stocks.
EASTERN EUROPE
Naftogaz creates upstream & commercial divisions
As part of the transformation, Naftogaz group dissolved the Integrated Gas Business division and instead created the Exploration and Production division and the Commercial division
The dissolution of the Integrated Gas Business division is 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 July 1 2020. Among the primary functions of the Commercial division are developing the gas retail segment, developing trading activities, and building effective natural gas sales channels. The Exploration and Production division 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 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,”
Week 19 13•May•2020
Chief Operating Officer of Naftogaz group Otto Waterlander noted.
“The creation of two new divisions is
the next step towards the transformation of Naftogaz group. By separating production, we enhance managerial control over maintaining and increasing our gas production as well
as extending the resource base. In turn, we expect the Commercial division to develop trading operations and a relatively new business - direct sales of gas to customers. I am sure that these changes will allow us to successfully fulfill 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 is headed by Oleksandr Romanyuk, who had previously held the position of First Deputy CEO at Ukrgasvydobuvannya. In his new position, he will be responsible
for developing the division’s strategy
and business plan, approving investment projects and budgets, managing operations of production units within the framework of the agreed strategy, budget and investment plan, appointing and dismissing employees, as well as occupational safety issues.
Olena Kobets was appointed CEO of JSC Ukrgasvydobuvannya, a key upstream asset of Naftogaz. Previously, for almost five years she headed the legal department of the company as Director of Legal Affairs and a member of the Board.
As CEO, Olena Kobets will be responsible for shareholder relations and the company’s compliance with legal and fiscal requirements, compliance with the standards and procedures of the group, and authorization of contracts, as well as ensuring the functioning of corporate governance. Moreover, she will be representing Ukrgasvydobuvannya as a legal entity.
“According to the logic of the transformation, key strategic decisions on business development will be made at the level of divisions, and operational work will be concentrated at the level of enterprises with the relevant expertise. Oleksandr Romanyuk has already made a great contribution to the increase in production, technical upgrade, restructuring of processes, and fighting against corrupt practices in production. He has expertise
in gas production and will be able to effectively push further reforms. Olena Kobets participated in the transformation
of corporate functions and the development and implementation of strategic projects. I am sure that her expertise will help establish effective interaction between the directors of divisions within the company,” concluded Andriy Kobolyev.
The head of the Commercial division will be appointed and announced at a later date.
NAFTOGAZ (UKRAINE), May 8 2020
CENTRAL ASIA & SOUTH CAUCASUS
Azerbaijan increases oil output in April
Azerbaijan increased oil production in April to 771,400 barrels per day from 763,900
bpd in March 2020, the press service of the Ministry of Energy of Azerbaijan reported.
The ministry emphasized that in April, Azerbaijan was relieved of its obligations to reduce oil production under the previous OPEC+ agreement.
In April, daily oil production amounted to 679,800 bpd, while condensate output amounted to 91,600 bpd.
Lukoil launches Central Asia motor oil sales to China
Russia’s LUKOIL Lubricants Central Asia, supported by Kazakh Invest national investment promotion company, has launched exports of industrial and motor oils along with oils for commercial and freight vehicles to China, Kazakh Invest said.
“An advantageous location of the plant by the side of the motorway Western Europe - Western China allows quick product delivery to China,” Kazakh Invest noted. “Today, the volume of the Chinese oil market is more than 8 million tons and has the potential for further growth. Further expansion of export deliveries of Lukoil oil to China will contribute to the development of international trade and an increase of Kazakhstani goods in the Chinese market,” it added.
The Lukoil plant in Kazakhstan has a production capacity of 100,000 tonnes of lubricants per year.
Lukoil Lubricants Central Asia has also launched an assistance programme for emergency medical services in Kazakhstan aimed at helping combat the coronavirus (COVID-19) outbreak.
“As part of the initiative, the company plans to provide emergency medical stations with motor oils to support the mobility of medical workers in difficult epidemiological conditions,” Kazakh Invest said. “Under the medical support program, the company has organized free supplies of LUKOIL oil to
the ambulance stations of the cities of Nur- Sultan, Almaty and Shymkent, as well as 14 regions of Kazakhstan.”
Around 9,000 litres of LUKOIL motor oil will be used by over 1,500 ambulances..
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