Oil and gas

The Cabinet authorized the Ministry of Finance to provide government guarantees (within the constraints of the 2009 state budget) for the restructuring of Naftogaz' external obligations. According to Ministry of finance, the term of repayment of the restructured debt should be close to 5 years.

Naftogaz held negotiations with creditors about restructing of Eurobonds at the total volume of USD 500 mln with maturity date at 30 September 2009.

The EGM of Ukrnafta [UNAF UZ, U/R], which was scheduled for today, did not take place because of the absence of the shareholders’ registry.

According to Ukrainian news, the Cabinet of Ministers of Ukraine intends to decrease the price of natural gas for domestic nitrogen fertilizer producers from USD 246.7 to USD 205 per thsd cbm.

The Cabinet of Ministers passed resolution #764 instructing the Ministry of Finance to restructure Naftogaz`s foreign debt and to decrease the costs of servicing its loans via refinancing.

On July 23, 205.8 thsd mt of oil was sold at Resources Auction 131, which took place on the floor of the Ukrainian Interbank Currency Exchange. According to the UICE’s official information, the average price of the oil was UAH 1,252 per mt (down 2.8% from the last large-volume auction, Auction 130, which took place on June 23), or USD 18.6 per bbl (excluding VAT, at USD/UAH 7.6632, down 3.4%).

At their September 14 EGM, shareholders of Concern Galnaftogaz [GLNG UZ, Speculative BUY] will vote on placing 2.93 bln new shares. The placement is planned to take place in two stages, November 2-16 and 17-19. Only existing shareholders will be able to purchase new shares. The price at which the shares will be offered is not yet known. As a result of the offering, the number of shares outstanding will increase by 16.7%, to 20.45 bln.

Ukraine’s Cabinet of Ministers has suggested to the country’s parliament that it confirm a proposal to use the troubled banks recap scheme as a model for Naftogaz’ recapitalization.

On June 23, 407.4 thsd mt of oil was sold at Resources Auction 130, which took place on the floor of the Ukrainian Interbank Currency Exchange. According to the UICE’s official information, the average price of the oil was UAH 1,288 per mt (up 4.9% from the last large-volume auction, Auction 129-D, which took place on May 26), or USD 19.2 per bbl (excluding VAT, at USD/UAH 7.6130, up 5.3%).

Concern Galnaftogaz [GLNG UZ, Speculative BUY] disclosed its consolidated IFRS 1Q09 results.