Oil and gas

Ukrnafta [UNAF UK] increased starting price for its oil to UAH 5680 per tonne (USD 98 per bbl) at May 26 oil auction. In the earlier auctions, UNAF sold its oil at UAH 3000-3500 per tonne (USD 52-60 per bbl) price. The company has also changed terms of shipment. Whereas earlier UNAF sold its oil ExWork, this time the sold oil is to be shipped to pipelines and railway stations.

At the EGM that was held on Tuesday, January 26, the shareholders of Ukrnafta [UNAF UZ] decided to pay out 100% of the net revenue earned by the Company in FY2006-2008. The total sum of the dividends should amount to UAH 5 bln.

The gas price for Ukraine in the first quarter of 2010 may reach USD 300-310 per 1000 cbm, according to a statement made yesterday by Gazprom Vice Chairman Vladimir Scherbakov. He also noted that the tariff for gas transport by Ukrainian pipelines for Gazprom will increase from its current USD 1.7 per thsd cbm/km to USD 2.8-3.0 per thsd cbm/100 km. Earlier, Gazprom remarked that Ukraine will have an average gas price of USD 280 per thsd cbm in 2010.

The shareholder meeting of Ukrnafta [UNAF UZ] on November 27, failed due to the fact that the registrar, Ukrnaftogaz, which is affiliated with Privat Group, didn't provide the shareholder registry. More hopes were placed on this particiculare EGM, compared to previous attempts to hold meetings, due to the existence of negotiations between the state and the Privat Group on the issues of the further management of the Company and the state’s willingness to formalize cooperation by signing a memorandum of understanding between UNAF's shareholders.