Refinery Kolomoisky will begin to buy oil from “Ukrnafta” without auctions

НПЗ Коломойского начнет покупать нефть у "Укрнафты" без аукционов

PJSC “Ukrnafta” and the Kremenchug refinery (Poltava region, “Ukrtatnafta”) has revised the principles of relationship and agreed to a tolling model of interaction (processing of raw materials under a tolling agreement).

About this informed the head of the Board of PJSC “Ukrnafta” mark Rollins, “Interfax-Ukraine”.

“We are moving to a full-fledged tolling model, in which we pay Kremenchug (refinery) only for processing. There are other financial options: we will pay the market price for processing. But for us it is a profitable agreement and a more robust agreement,” he said.

Chairman of the Board, the contract with which by decision of the shareholders will expire on April 30, said that the company is not able to export oil and must sell it at public auction.

The only player on the market that can process resource – refinery “Ukrtatnafta” carries out the purchase of oil state-owned company with guaranteed regularity.

In addition, the obtained oil “Ukrnafta” oil products were sold its petrol stations (gas stations) with the commissioning of the refinery, explained Rollins.

According to him, the transition to a tolling relationship will allow the company to ensure stable cash flow.

“With the new model we will not depend on whether they want to buy our oil or not. We control cash flow at all stages, it will not be broken each time a break auctions. We decide how much you want to recycle. After processing we take all the oil products and sell them via our filling stations,” he said.

“Ukrnafta” in 2018 increased production of oil and gas condensate production by 5% (to 0.069 million tonnes) compared to 2017 year – to 1,448 million tons. Gas production fell by 2.3% (by 0.026 million cubic meters) – up to 1,082 billion cubic meters, liquefied gas production by 5.2% (6 thousand tons), up to 110 thousand tons.

The company at the end of 2018 received 6 billion 628,148 million UAH net profit, UAH million 101,771 against the same indicator in 2017.

Ukrnafta is the largest oil producer in the country. “Naftogaz of Ukraine” owns 50%+1 share “Ukrnafta” group of companies linked to former shareholders of PrivatBank – about 42% of the shares.

We will remind, shareholders of Ukrnafta March 30, at the meeting shareholders voted for the early termination as of 30 April 2019 of the powers of the Chairman of the Board Mark Rollins and the election temporarily fulfilling these responsibilities Oleg Geza, and also updated the Supervisory Board to include independent members.

Earlier Kolomoisky said, what the status is ready to work with Zelensky.