“Ukrnafta”: Potential investors are deterred by the absence of the right to export oil

the Chairman of the Board of “Ukrnafta” is talking about the idleness of oil auctions in Ukraine in conditions when export is prohibited.

“Oil auctions are not working for us. We have been convinced of it for many years... We cannot export oil and it discourages investors and does not allow the market to develop effectively. The market actually does not work”, Mark Rollins said, the Chairman of the Board of “Ukrnafta” said during a speech at the Ukrainian Energy Forum, which takes place in Kyiv from February 26 to 28.

According to him, the auctions are not needed in the form they exist now, as there is still one buyer who buys the resource and processes it in its capacities:

“I actually think that such auctions are not needed by themselves, in the mechanism in which they exist now. They do not attract buyers, as there is only one potential buyer – “Ukrtatnafta” – one of the Ukrainian refineries which uses all the produced oil at its refinery”.

“We actually have no auctions, because we cannot export oil. And honestly, I don’t understand why it cannot be exported at world prices, offering an attractive price... over the next few years, we have to work on changing the rules, but at the moment the auctions are not working”.

Thereat, according to Rollins, company plans to “redirect the capital” in gas sector.

According to “Ukrnafta’s” information, 109 thousand tons of oil were sold in auction on February 20, 2019 and costed 1.6 billion UAH.

 

Tags: oil, Ukrnafta

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