Page 74 - UKRRptSept23

9.2 Major corporate news 9.2.1 Oil & gas corporate news
Naftogaz subsidiary Ukrgasvydobuvannya has opened a new gas field with a potential one billion cubic meters of blue fuel. Testing of the well with a depth of almost 4,000 meters was completed in August. Before drilling, experts conducted a 3D seismic survey. Geological information indicates that the new field may have reserves totaling onebn cubic meters of gas. This is not the first discovery of new hydrocarbon deposits this year. By increasing reserves, we are creating the foundations for the sustainable growth of domestic gas production," commented Oleg Tolmachev, acting general director of Ukrgasvydobuvannya. He also added that Ukrgasvydobuvannya will continue geological exploration efforts at this new site in parallel and plans to drill new wells.
Naftogaz says cost of gas for households and budget institutions will remain unchanged in next heating season. Ukraine’s Cabinet of Ministers extended the Public Service Obligations (PSO) regime on the country’s natural gas market on August 22. This will make it possible to keep heat tariffs for households unchanged. Following Naftogaz’s proposal, the cost of gas to produce heat for commercial consumers will be reduced compared to last season, and will be determined based on market prices in Ukraine. A flexible mechanism for using fixed gas volumes during the heating season by heat producers has also been introduced. From now on, heat producers will be able to use fixed gas volumes saved during the previous month in subsequent periods of the heating season. At the same time, we call on communities to use natural gas sparingly and pay bills timely as this affects Ukraine’s national energy security. PSO were imposed on natural gas market entities to serve the interests of the general public and ensure the effective functioning of the natural gas market.
Naftogaz Group has opted to rescind bonus payments totaling UAH 44.7mn to underperforming companies affiliated with Dmitry Firtash. This decision was reached during a meeting convened on August 18 by the Naftogaz Board. During August 2023, leadership changes have taken place at JSC Mykolayivgaz, JSC Ivano-Frankivskgaz, and JSC Khmelnytskgaz, entities that were formerly part of Dmitry Firtash's Regional Gas Company. Following an audit of financial statements initiated by the newly appointed management, it has been determined that prior decisions of supervisory boards granting unwarranted bonuses to former chairpersons and members of the management boards in May 2023 will be nullified. Notably, all the aforementioned companies have reported financial losses, with outstanding receivables, allegations of tax evasion, and ongoing involvement in legal proceedings. These circumstances render the bonuses indefensible, and the pursuit of substantial bonuses points to misconduct on the part of the former corporate executives. On August 15, JSC Mykolayivgaz, JSC Ivano-Frankivskgaz, and JSC Khmelnytskygaz were integrated into Naftogaz Group. The primary objective of the new management is to ensure seamless operations, judicious utilization of energy resources, stringent financial integrity, and the cessation of debt accumulation.
A Polish oil concern increased sales to Ukraine by 62% in six
74 UKRAINE Country Report September 2023 www.intellinews.com