Ukraine's State Oil & Gas Monopoly Eyes an IPOBy Worldwide News Ukraine, PRNE
Wednesday, March 23, 2011
KYIV, Ukraine, March 24, 2011 - The Minister of Fuel and Energy of Ukraine Yuriy Boyko
announced the plans of the national oil & gas giant Naftogaz to offer part of
its shares on the international stock market in 2012-2013. By offering
Naftogaz on the stock market the ministry plans to attract some 5-6 billion
USD. The decision came as a result of a meeting of the Committee on Economic
Reforms, headed by the President Viktor Yanukovych.
Yuriy Boyko noted that currently consultations are being
conducted regarding the stock exchange where the IPO would be most profitable
"We plan to receive 5-6 billion dollars from the IPO. The
money will be allocated toward the company development, domestic gas
production increase and domestic gas transit system modernization,"
During the executive board meeting of the Committee on
Economic Reforms on March 21, 2011, President Viktor Yanukovych voiced the
possibility of selling a part of NJSC Naftogaz. For the reliable gas and oil
refining products' supply, Ukraine has to attract finances on both internal
and external markets, said Viktor Yanukovych. "If we have to cede a part of
NJSC Naftogaz and to sell part of its shares, we will have to do it," added
NJSC Naftogaz is the leading fuel and energy enterprise of
Ukraine engageds in gas and oil fields exploration and development, supplies
gas to the consumers in Ukraine and transits Russian gas to Europe.
Naftogaz is a strategic partner of Russian Gazprom. Around 70
percent of Russian gas - 94.6 billion cubic meters in 2010 - was transited
through Ukraine to Europe.
Currently, work is underway to establish a joint Gazprom and
Naftogaz enterprise for coal-bed methane production.
Naftogaz of Ukraine is a state-owned company that produces one
eighth of Ukraine's GDP and provides 10 percent of the state budget revenues.
The total number of the company's employees is 175 thousand people, which is
about one percent of Ukraine's employable population, according to the
company Web site. Suffice it to say that Ukraine's system of natural gas
pipelines and underground natural gas depots is operated by the subsidiary of
Naftogaz - Ukrtransgaz. Another Naftogaz subsidiary, GazUkrainy, distributes
gas domestically to local Ukrainian heat supply companies.
For more information, please contact Maryna Khorunzha, +380443324784 news at wnu-ukraine.com, Project Manager at Worldwide News Ukraine
Tags: Kyiv, March 24, Ukraine, Worldwide News Ukraine