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Ukraine’s only operating oil refinery plant, part of Ukrtatnafta company, may halt production due to Ukrtransnafta’s suspension of oil supply
"The pumping of oil into Kremenchuk oil refinery plant has stopped today. This delivery failure may result in unwanted situations, including the halt of production," said deputy chairman of the board of Ukrtatnafta, chief of the financial economic division Viktor Babychenko.
According to Babychenko, the management sent a telegram to Ukrtransnafta, calling on an immediate resumption of deliveries of raw material, but no response has been received yet.
Earlier today, Ukraine’s biggest oil production company Ukrnafta also stated there was a threat to a halt of oil and gas production.
In turn, Babychenko noted that the failure to deliver raw materials from by state owned Ukrtransnafta is all the more surprising since there was held on Friday, July 31, at the Ministry of Energy to create a vertically integrated oil company (VIOC), which should include Ukrnafta, Ukrtransnafta and Ukrtatnafta.
"At this meeting, the representative of Ukrtransnafta said that nothing terrible would happen if they were not included in VIOC, as a state-owned company. All contracts are signed and Ukrtransnafta is ready to fulfill all its obligations. But as we can see, the company's actions are at odds with its statements," said Babychenko.
"Heads of ministries and companies have to make conclusions in order to prevent similar situations in the future," he added, noting that the only stoppage of Ukraine’s only operating refinery will be costly to the state.
As UNIAN reported earlier with reference to Naftogaz of Ukraine, on March 19, the company's supervisory board dismissed Oleksandr Lazorko from his duties as the Chairman of the Board of Ukrtransnafta.
On April 23, Naftogaz has appointed Roman Sidorak new head of Ukrtransnafta.
Lazorko’s suspension was carried out with the use of force. Approximately 10 people illegally broke into his office.
Lazorko repeatedly said he considered his dismissal unfounded and challenged it in court.
In mid-July, the court ruled to reinstate Lazorko in office, but in Naftogaz stated that it did not intend to follow the court ruling.
UNIAN memo. Ukrtransnafta is the operator of the oil transportation system of Ukraine, which includes 18 pipelines with total length of 4569 km, 51 oil pumping stations, 11 storage tanks with total capacity of 1,010 thousand cubic meters, and 176 pumping units with a total capacity of 356.9 thousand kW.
Ukrtatnafta was founded in 1994 according to the decrees by the Ukrainian president and the president of Tatarstan, on the capacities of the Kremenchug oil refinery plant. The plant’s project capacity is 18.6 million tonnes of refined oil a year.
Ukrtatnafta (Kremenchuk refinery, Poltava region) increased its net profit in January-June 2015 in comparison with January-June 2014 by 2.2 times - up to UAH 1.026 billion from UAH 0.461 billion.