The contract between Ukrtransnafta and Transneft for the transit of oil for 2020 will be automatically extended, according to the prospectus of Eurobonds of Naftogaz of Ukraine, Enkorr reports.
“The oil transit agreement is valid until December 31, 2019, and then automatically renewed for each subsequent year if either party does not inform the other about its termination with a 6-month advance notice. None of the parties sent a notice of termination, and the agreement on oil transit will be extended automatically”, the document says.
The contract between the companies was concluded on November 16, 2004. It does not determine mandatory fixed volumes of oil pumping; they depend on various factors.
Recall that in April, Ukrtransnafta was forced to suspend the operation of Druzhba pipeline due to organochlorine compounds in raw materials.
Earlier it was reported that Ukrtransnafta received more than €4 million of compensation from Russia for low-quality oil.
The company said that since the resumption of transit, Ukrtransnafta JSC has not recorded repeated cases of oil with an increased content of organochlorine compounds in the Ukrainian section of Druzhba oil pipeline and continues to provide transit to Europe as planned.
Oil price increase amid weakening US dollar
Naftogaz ramped up oil production at facilities in the Western Desert of Egypt
Ukrtransnafta guarantees income of UAH 1.1 million to the state from the management of the Samara - Western Direction pipeline