01.07.03

Naftohaz Ukrayiny to increase gas exports 340% in 2003

Naftohaz Ukrayiny plans to increase gas exports 340% year-on-year to amount to 7 billion cubic meters in 2003, company CEO Yuri Boiko told journalists in London.

He said that in the first five months of this year the company exported 3.3 bcm of gas, including about 2 bcm to Germany, 600 million cubic meters to Hungary, 400 mcm to Romania and 300 mcm to Poland.

As reported earlier, Naftohaz Ukrayiny signed a contract with Russia's Gazexport to transport 5 bcm of gas. In addition, the company independently exports about 1.5 bcm of gas under three contracts with Poland, Hungary and Romania.

Naftohaz Ukrayiny was among the largest companies in Ukraine in 2002 in terms of net profit (1.24 billion hryvna) and revenue (30.68 billion hryvna).

(Interfax)

Companies ask Russian, Ukrainian PMs to support reverse of Odessa-Brody

A number of Russian companies have appealed to the prime ministers of Russia and Ukraine with a request for support the reverse use of the Odessa-Brody pipeline to transport 9 million tonnes of oil per annum.

This request is contained in a letter to Russian Prime Minister Mikhail Kasyanov and Ukrainian Prime Minister Victor Yanukovych, the text of which has been made available to Interfax. The letter was signed by Transneft President Semyon Vainshtok, Rosneft President Sergei Bogdanchikov, Tyumen Oil Company Executive Director German Khan, Yukos CEO Mikhail Khodorkovsky, Sibneft President Yevgeny Shvidler and Slavneft President Yuri Sukhanov.

"In our opinion the successful implementation of this project will make it possible to increase Russian exports to the world energy market, which, in favorable conditions, will ensure additional revenue for the Russian budget," the letter to Kasyanov said.

The authors of the letter cite experts as saying that an increase in oil exports of 9 million tonnes per annum through the Black Sea "will not have a significant influence on the shipping and ecological situation in the region. As a result, the project will not have negative consequences for other participants in international trade."

On the other hand, current and forecast oil production levels will allow Russian companies "to guarantee stable and full utilization of the Odessa-Brody pipeline. This will have a positive influence on the socio-economic situation in regions through which the pipeline passes, will provide additional revenue for the Ukrainian budget and will help further develop inter-state relations," the letter to the Ukrainian prime minister said.

The oil company chiefs asked the prime ministers of both countries to "direct interested ministries and departments to include this transit route for Russian oil through Ukrainian territory in a draft agreement between the Russian government and the Ukrainian Cabinet of Ministers."

As reported earlier, the companies Naftohaz Ukrayiny, Ukrtransnafta and Russia's Tyumen Oil Company and Transneft signed a protocol of intent in Moscow on April 23 to organize a new export route for Russian oil through Ukraine, using the Odessa-Brody pipeline in reverse to export an additional 9 million tonnes of oil per annum.

Ukrtransnafta in January-May 2003 already transported 9 tankers of oil from the Yuzhny terminal with 767,000 tonnes of oil and paid 40 million hryvna to the Ukrainian budget from the use of the terminal and the 52-km Odessa-Brody pipeline.

(Interfax)