Naftogaz of Ukraine sees no possibility to satisfy the request of the company Ukrnafta on redemption of own resource production. A letter in this context was sent by the head of Naftogaz Andrey KOBOLEV, Chairman of Ukrnafta Mark Rollins, reports EP.

“The company considered a proposal by Ukrnafta on the purchase of 162 000 tons of oil and 700 tons of gas condensate. Please be informed that consideration of this matter is possible only under the relevant amendments to the financial plan of Naftogaz for 2017”, – the document says.

As previously reported, in early November, mark Rollins turned to the first Deputy Prime Minister Stepan Kubiv with a request to initiate a review of pricing rules for Ukrainian oil.

The main purpose of this petition is to achieve adjustments of the resolution of Cabinet of Ministers No. 570, which regulated the rules of conduct of auctions for the sale of oil.

“With a significant volume of customs clearance of imported oil starting price of Ukrainian in the auction is determined on the basis of the reference GFS on the customs value of imported oil,” – says the decision.

This rule exists since the adoption of the resolution – October 16, 2014 – but actually it started to work only in the late summer of 2017, when the only working refinery in the country – Ukrtatnafta – increased purchases of Azeri Light to 110-120 000 tonnes per month.

The use of this norm has led to the fact that at the last auction, the starting price of Ukrainian oil was 14 641 UAH/t on the field, which corresponds to $62,5/barrel, while Brent oil futures were in the range of $56-58 per barrel.

For this reason, the purchase of Ukrainian oil to Ukrtatnafta, in the words of its Chairman Pavel Ovcharenko, “economically feasible”. In this regard, Ovcharenko sent a relevant notification to Rollins, thereby creating latest ground for lobbying before the government changes the rules of competitive sales of oil.

Naftogaz has refused to redeem the Ukrnafta oil 29.11.2017

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