Ukraine's Ukrnafta to attract loan of 4 bln hryvni for drilling, generation

MOSCOW. Aug 30 (Interfax) - Ukraine's Ukrnafta oil producing company will attract a loan of 4 billion hryvni in loan funds from Ukrgasbank to drill new wells and build gas engine generators and put them into operation, Ukrainian media outlets said with a reference to the company's press service on Friday.

"The drilling and production intensification programs and the construction of modern gas engine generators are planned by means of attracted funds," Ukrnafta Director Sergei Koretsky said.

Information about the term of the loan and the interest rate is not disclosed.

As reported, Ukrnafta announced 16 tenders to buy gas generator sets with combined capacity of 63.59-76.4 MW. The company is planning to buy two generating sets with capacity of 1-1.3 MW, one 1.6-2.1 MW set, two 1.95-2.5 MW sets, three 2.4-3.1 MW sets, one 2.94-3.7 MW set, three 3.9-4.5 MW sets, one 4.4-5.2 MW set, one 5.85-6.8 MW set, and two 12-14.1 MW sets. The start of auction bidding was extended by two weeks, 9-10 September, 2024.

In 2023, Ukrnafta increased production of oil with condensate by 3%, or 39,900 tonnes, to 1.4 million tonnes. Production of natural and associated petroleum gas increased by 60.4 million cubic meters, or 5.8%, to 1.097 billion cubic meters.

Ukrnafta is Ukraine's largest oil producer and operator of the national chain of filling stations. In March 2024, the company started managing Glusco's assets and now operates 545 filling stations in total, 460 under its own brand and 85 under management.

The company is carrying out a comprehensive program of resuming its operations and updating the format of filling stations of its chain. Since February 2023, Ukrnafta has been issuing its fuel coupons and NAFTACard cards sold to legal entities and individuals by Ukrnafta-Postach LLC.

The biggest shareholder is Naftogaz with 50% plus one share. The Headquarters of the Supreme Commander-in-Chief ruled on November 5, 2022 to expropriate Ukrnafta shares owned by private shareholders - that stake is now controlled by the Defense Ministry.

According to the National Bank of Ukraine (NBU), as of July 1, 2024, Ukrgasbank was ranked fifth by total assets (190.88 billion hryvni) among 62 operating banks. Ukrgasbank's net profit amounted to 1.94 billion hryvni in 2023.