In Ukraine, want to create a warehouse of gas for the EU, and to purchase drilling: oil and gas overview for the week

Gas company in an open letter to the President, Prime Minister and MPs proved the inexpediency of the introduction of fees for entrance to the CTA at the level of 296,8 USD for thousand cubic meters. According to the companies, additional payment is comparable to the increase in rental rates for mining companies by 5.5%.

The appeal says that the new financial liability is contrary to several lobbied by the companies initiatives, which are aimed at implementation of the state strategy to increase gas production. Representatives of the mining industry pointed out that the mining companies use their own assets to supply gas to the gas transportation system, and the suppliers of imported gas to use cross-border capacities, the maintenance of which is financed by Ukrtransgaz. In addition, the established tariff rates are among the highest in Europe, the letter says.

Another important news of the week on the topic of the CTA applies to amendments to several legal acts of the Ministry of Finance. As reported on his page on Facebook the Executive Director of Ukrtransgaz, Sergey Makogon, their adoption will allow UTG to create on the basis of underground gas storage “customs warehouse for the storage of gas for Western partners for a period of up to three years”. According to him, these changes will resolve the virtual reverse and connect the Ukrainian gas market with the European. In the comments to the post Sergey Makagon explained that despite many existing problems in legislation, gas traders Express a desire to store gas in a customs warehouse with the possibility of further sales in Ukraine.
Meanwhile, representatives of the Energy Community Secretariat expressed doubts as to the validity of the transport tariffs in Ukraine. In ES talking about the lack of transparency of tariffs and mechanisms of their formation natsregulyatora.

In turn, Naftogaz reported that it is prepared to develop proposals for the elimination of intermediary organizations from Group DF from the process gas supply to the population, which is purchased on preferential terms from the resources of “Naftogaz”. In state-owned companies also noted that the gas companies don’t use public platforms for procurement and do not pay for the use of the GTS. In response to several complaints on the website of the AMC published information about the necessity of making a number of changes to the legislation governing public procurement in terms of expanding the list of areas of management by supplementing this type of business as the distribution of gas.

In Naftogaz believe that the supplier of gas for the population should own responsible for the availability of the necessary volumes of gas. This can be implemented at the expense of own production, imports or purchases on the wholesale markets. The purchase price of gas for consumers should be fixed for the period specified in the contract.

This approach is aimed at creating conditions for competition in the provision of services.

In fact, Naftogaz will soon be new members of the Supervisory Board. On the government website published information about the competition for the position of independent member of the Supervisory Board of the company. The nomination of another representative from the state will be selected in accordance with the procedure defined by the CMU Resolution No. 143 dated March 10, 2017.

Disputes over transport tariffs and the role of operators, as well as commitments on implementation of the requirements of the Third energy package, forcing Naftogaz to seek effective control by the process of separating the GTS. In this regard, the state-owned company announced a tender on purchase of services Advisor unmolding. The requirements for applicant companies, special attention will be paid to conflicts of interest and other issues of compliance policy.

In addition to the tender, Naftogaz is looking for professionals for investment banking services for decision-making on its assets in Egypt.
All tenders published in Prozorro.

In the framework of the program of increasing the production of gas, “20/20”, the company has announced a tender for the purchase of three mobile drilling rigs expected to cost nearly half a billion hryvnia. Plans procurement — two units with a capacity of 225 tons and one unit with lifting capacity of 180 tons. Documents can be submitted until may 15.

The company also announced the introduction of staff motivation system taking into account key performance indicators.

Against the background of a number of disputed topics in the industry it is worth noting the positive outcome of gas production for the first three months of the year. In comparison with the same period last year, an increase of 1.3%, or 67.4 million cu m. the State of the company also increased its production by 0.3% for the period January-March of this year and nearly 3% at the end of March.

Inna Kucherenko, expert oil and gas market