KYIV, Sept 21 – Ukraine’s Ukrnafta expects oil and natural gas output to match last year’s level since higher than expected revenues allow it to raise capital expenditure, the chairman forecast on Thursday.
Oleh Salmin, Ukrnafta’s chairman, told a shareholders meeting the company produced 1.925 million tons of oil and 2.199 billion cubic meters (bcm) of natural gas in the first eight months of the year. He gave no comparative figures.
“We hope our oil and gas output will match the levels we achieved last year,” Salmin said.
Ukrnafta, which accounts for over 90 percent of Ukraine’s domestic oil output, produced 2.951 million tons of oil and 3.353 bcm of natural gas in 1999.
The company originally expected oil output to fall to 2.83 million tons this year after a 1.4 percent fall in 1999. Natural gas output was expected to fall to 3.14 bcm in 2000.
But Salmin said a new system of selling crude oil and gas condensate through an exchange and higher oil prices was allowing the company to raise profits this year and channel funds into development.
Deputy Chairman Oleksander Kovalko told the shareholders meeting the company planned altogether to channel Hr 711 million ($130.72 million) this year into developing new deposits and modernizing equipment.
Ukrnafta shares, listed on the first tier of the PFTS electronic share trading system, rose to Hr 22.1911 at Wednesday’s close from Hr 21.95 on Tuesday.
