23.-29.12.2019

This week, Naftogaz NJSC announced receipt of a USD 2.9 billion remaining balance from Gazprom upon arbitration decision. Naftogaz totally received USD 5 billion under the decision. The payment also includes interest accrued from the date of announcement of the result of the Stockholm arbitration.

Negotiations between the parties to clarify the terms of the extension of the transit contract run on.
NEURC made a decision on certification, licensing and setting tariffs for transportation services to the new GTS Operator of Ukraine.
Tariffs are set for 2020-2024. According to the Resolution made, the GTS entry tariff for domestic enterprises will be UAH 101.93 per 1,000 cubic meters per day, the tariff for exit points - UAH 124.16 per 1,000 cubic meters per day.
Artiom Petrenko was appointed the CEO of the Association of Gas Producers of Ukraine.
For previous three years, Artiom was responsible for legal footwork, coordination of the development and implementation of important gas production sector initiatives on fiscal policy, transparent subsoil access and the licensing system.

16-22.12.2019

On December 21, representatives of the European Commission, Ukraine and the Russian Federation reached an agreement on Russian gas transit through Ukraine to European consumers and the settlement of mutual claims. According to the Minister of Energy and Environmental Protection of Ukraine Oleksiy Orzhel, the new contract provides for guaranteed minimum volumes of blue fuel transit in 2020 at the level of 65 BCM of gas, and 40 BCM from 2021 to 2024 annually.

Yuri Vitrenko on his Facebook page also noted that Ukraine would receive USD 3 billion stipulated by the decision of the Stockholm arbitration.
According to the minutes of the meeting published, the parties will also enter into amicable agreements by December 29, 2019, providing for the recall of all new and recent lawsuits (including those related to Ukraine and Gazprom’s violating the competition law) and the removal of all asset attachment at Gazprom enterprises.
Another important news of the week was the signing by the GTS Operator of Ukraine and the Romanian operator TRANSGAZ of an inter-operator technical agreement, according to which Ukraine will import gas through the Trans-Balkan gas pipeline from January 1, 2020. According to the operator press service, negotiations under the facilitation of the European Commission lasted more than three years, operators of Bulgaria, Greece and Moldova were also involved. From January 1, the capacity will be available at the Isakcha1-Orlovka1 interstate point on the Ukraine-Romania route in the amount of 17.8 MMCM per day, whereas 15.8 MMCM per day in the opposite direction.
US sanctions against the Nord Stream 2 and Turkish Stream gas pipelines stipulated by the US defense budget for fiscal year 2020 also came into force this week.
According to recent reports, Ukrnafta produced 125.2 thousand tons of oil and condensate and 95.5 MMCM of gas in November 2019, which is respectively 2.9% and 2.6% up compared to November 2018. The average daily hydrocarbon production in November amounted to 4.17 thousand tons of oil and condensate and 3.18 MMCM of gas, slightly increasing compared to the previous month.

09-15.12.2019

Ukrgazvydobuvannya finalizes the PEC project. The company selected two companies: the Romanian ExpertPetroleum and the Chinese consortium of XinjiangBeiken and Shengli companies.

These companies will become parties to commercial negotiations to enter into production enhancing contracts in two groups (clusters) of gas fields in the Western region.
UGV and finalists will discuss future production and investment programs and the company will determine the winner for each group of fields. The start of work is scheduled for the first half of 2020.
Weatherford International Plc announces successful financial restructuring. The report says that at the moment the company has a more solid financial basis: it reduced its outstanding accumulative debt by approximately USD 6.2 billion, received USD 2.6 billion in financing funds, including a USD 450 million revolving credit line, received a USD 195 million letter of credit and ensured a USD 900 million liquidity.
“This is a great day for Weatherford as we have become a stronger and more focused organization,” Mark A. McCollum, President and CEO of Weatherford, said.
Weatherford expects that its newly issued ordinary shares will initially restore trading in over-the-counter markets and, ultimately, the Company plans to move to the New York Stock Exchange subject to the relevant permits.
Akhtyrka oil industry region completed annual production plan. This was reported by Ukrnafta PJSC. 260.6 MMCM of natural and associated gas was produced by December 12. The annual oil and condensate production plan was completed on December 13 - 665.5 thousand tons.
Polish PGNiG and ERU ManagmentServices (American parent company of the ERU group) plan joint exploration and exploitation of hydrocarbons in the Lviv region.
It comes to joint activities on a license for a hydrocarbon section located in the Lviv region next to the Polish border.

02-08.12.2019

On Friday, the new head of the State Service of Geology and Subsoil of Ukraine Roman Opimakh introduced the Investment Atlas of the Subsoil User - a guidebook for the investor with the facilities ready for subsoil use. The information is updated on a continuous basis.

The visit of the working group of the State Service of Geology and Subsoil of Ukraine to London is scheduled for next week to present investment opportunities in three PSA sites.
Sela Energy XXI drew up a preliminary analysis of the Ichnyansky, Akhtyrsky and Grunivsky blocks, which are offered for PSA auctions. The results of the analysis will be presented to potential investors in London on December 11. The Ukrainian delegation includes the head of the State Service of Geology and Subsoil of Ukraine Roman Opimakh, Deputy Minister of Energy Sergey Maslichenko, member of the Board of Sela Energy XXI Milenko Chimich, chairman of energy projects of CMS Cameron McKenna Nabarro Olswang Vitaliy Radchenko.
Combating "sleeping licenses" will start in the near future. The government will establish a monthly royalty fee for sites special permits for which were issued more than three years ago. This was reported on the official page of the Prime Minister of Ukraine. According to the report, there are 80 such sites available for oil and gas production but not being operated.
“We developed a bill that will stimulate the return of licenses... you are either engaged in the operation of the site that you received from the state, or you pay taxes from gas production, but without receiving any profit,” Alexey Goncharuk says. In the event that the owners cannot pay the established fee, the licenses will have to be returned to the state.
At 2018 year-end, the activities of the GEO ALLIANCE Group of Companies were once again marked in the Good Faith Taxpayer rating.
Prirodnye Resursy PrJSC from the GEO ALLIANCE Group of Companies was awarded in the Mining and Quarry Development category. The award was received by GEO ALLIANCE CFO Maxim Kvasolya.
Ukrnefteburenie PrJSC successfully mastered the well No. 42. The initial daily gas flow rate was 158 thousand cubic meters, condensate flow rate amounted to 19.4 tons. The depth of the well was 4,868 m. Drilling and casing were completed in 132 days, which is 10 less than expected. The company notes that in the process of drilling and cementing, products and services were supplied by a number of foreign companies: Voestalpine Tubulars GmbH & Co KG, Smith Bits, Weatherford Ukraine, LGH Inc, Exlalo Drilling Ukraine, New Tech Ukraine, Denimex Ukraine.
NewTechUkraine on Friday reported the successful completion of engineering support for lowering and cementing of 244.5mm casing string in the well of the Sviridovskoe field owned by Regal Petroleum. The company encloses its gratitude to the drilling contractor Energofinance LLC and the cementing contractor Schlumberger Services of Ukraine LLC for high-level cooperation.