Oil and gas

As reported by Ukrainian News, Prime Minister Yulia Tymoshenko directed several government bodies to prepare directives for allowing Ukrainian fertilizer producers to purchase natural gas directly from gas extraction companies.

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

On January 21, 245.0 thsd mt of crude oil were sold at Resources Auction 125, which took place on the floor of the Ukrainian Interbank Currency Exchange. According to our source at the UICE, the average price of oil was UAH 1,334 per mt (down 8.0% from the previous Auction on December 24, 2008), or USD 19.4 per bbl (excluding VAT, at USD/UAH 7.8075, down 6.5%).

The total volume offered at Auction 125 was 416.4 thsd mt, 55% of which was sold.

On December 23, 197.4 thsd mt of crude oil were sold at Resources Auction 124, which took place on the floor of the Ukrainian Interbank Currency Exchange. According to our source at the UICE, the average price of oil was UAH 1,450 per mt, or USD 20.8 per bbl (excluding VAT, at USD/UAH 7.94).

An EGM of Ukrnafta [UNAF UZ, BUY], which was scheduled for today, did not take place because of the absence of the shareholders’ registry. The agenda for the EGM included profits’ distribution for 2006 and 2007, as well as recalling and electing the Supervisory Board, the Revision Board, and the Management Board of the company.

The European Commission has acknowledged the compliance of Ukraine’s sunflower oil to European standards. The Commission inspected Ukraine’s oil producers in September. The results of the inspection were officially released yesterday by the Government of Ukraine. The Eurocomission admitted that Ukrainian state systems of prevention of oil contamination meets all European standards, which are defined in the Eurocommission decision # 2008/433.

On November 25, 215.3 thsd mt of crude oil were sold at Resources Auction 123, which took place on the floor of the Ukrainian Interbank Currency Exchange. According to our source at the UICE, the average price of oil was UAH 1,719 per mt, or USD 28.9 per bbl (excluding VAT, at USD/UAH 6.75).

Ukrnafta [UNAF UZ, BUY] plans to sell 422.4 thsd mt of oil and 19.5 thsd mt of gas condensate at the Ukrainian Energy resources Auction 123 on November 25.

Ukrnafta [UNAF UZ, BUY] will not sell oil at the auxiliary Ukrainian Auction 122-D, announced for November 18.

On November 10, Concern Galnaftogaz [GLNG UZ, Speculative BUY] disclosed its selected consolidated UAS 1H08 results.