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  • Naftogaz group continues transformation with creation of Upstream and Commercial divisions based on international best practices
    édité le 11/05/2020 - Plus de news de "Naftogaz" - Voir la fiche entreprise de "Naftogaz"


Naftogaz group continues transformation with creation of Upstream and Commercial divisions based on international best practices
As part of the transformation, Naftogaz group dissolved the Integrated Gas Business division and instead created the Exploration and Production division and the Commercial division.

The dissolution of the Integrated Gas Business division is due to the need to adapt structures to new market conditions and focus on gas sales to end consumers after the cancellation of Public Service Obligations (PSO) from 1 July 2020. Among the primary functions of the Commercial division are developing the gas retail segment, developing trading activities, and building effective natural gas sales channels. The Exploration and Production division will be responsible for the exploration and production of natural gas and liquid hydrocarbons, effective investments, and the growth of proven reserves in the Naftogaz portfolio.

“Naftogaz is committed to becoming a strong company with sound corporate governance and to carrying out activities according to international standards. The separation of hydrocarbon production and sales activities is among the best practices of international oil and gas companies. This is a proven model that has demonstrated its effectiveness worldwide. I am sure it will prove its effectiveness at Naftogaz. There will be two teams and two leaders within the group. Each will focus on their domain. By doing so, we want to increase efficiency,” Chief Operating Officer of Naftogaz group Otto Waterlander noted.

“The creation of two new divisions is the next step towards the transformation of Naftogaz group. By separating production, we enhance managerial control over maintaining and increasing our gas production as well as extending the resource base. In turn, we expect the Commercial division to develop trading operations and a relatively new business - direct sales of gas to customers. I am sure that these changes will allow us to successfully fulfill the tasks assigned to the company and once again prove that Naftogaz group has been and remains the change leader in the Ukrainian SOE sector,” commented Naftogaz CEO Andriy Kobolyev.

The Exploration and Production division is headed by Oleksandr Romanyuk, who had previously held the position of First Deputy CEO at Ukrgasvydobuvannya. In his new position, he will be responsible for developing the division’s strategy and business plan, approving investment projects and budgets, managing operations of production units within the framework of the agreed strategy, budget and investment plan, appointing and dismissing employees, as well as occupational safety issues.

Olena Kobets was appointed CEO of JSC Ukrgasvydobuvannya, a key upstream asset of Naftogaz. Previously, for almost five years she headed the legal department of the company as Director of Legal Affairs and a member of the Board.

As CEO, Olena Kobets will be responsible for shareholder relations and the company’s compliance with legal and fiscal requirements, compliance with the standards and procedures of the group, and authorization of contracts, as well as ensuring the functioning of corporate governance. Moreover, she will be representing JSC Ukrgasvydobuvannya as a legal entity.

“According to the logic of the transformation, key strategic decisions on business development will be made at the level of divisions, and operational work will be concentrated at the level of enterprises with the relevant expertise. Oleksandr Romanyuk has already made a great contribution to the increase in production, technical upgrade, restructuring of processes, and fighting against corrupt practices in production. He has expertise in gas production and will be able to effectively push further reforms. Olena Kobets participated in the transformation of corporate functions and the development and implementation of strategic projects. I am sure that her expertise will help establish effective interaction between the directors of divisions within the company,” concluded Andriy Kobolyev.

The head of the Commercial division will be appointed and announced at a later date.

About Naftogaz

Naftogaz is the national oil and gas company of Ukraine, which was established in 1998. Headquartered in Kyiv, the company covers a full range of activities in the oil and gas business including: production and refinery; transportation and storage; wholesale trade and distribution as well as technical support.


Origine : Communiqué Naftogaz

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