Category: energy

Ukraine’s Gas Wells and Windmills

On Aug 25 2010

Ukraine is currently debating grain quotas and the jury is still out on the country’s new president but the energy sector is making waves.

Poland’s richest man, billionaire Jan Kulczyk, who bought into Ukraine’s natural gas production in June, has already started drilling. Kulczyk Oil Ventures launched the M-19 well at the Makiivka gas deposit in Donetsk region.

Earlier this summer, Kulczyk Oil Ventures, through its subsidiary, Loon Ukraine Holding, bought a 70% stake in of one of Ukraine’s largest private producers of natural gas, KUB-Gas, for $45 million. Kulczyk Oil Ventures, which went public in May on the Warsaw Stock Exchange (symbol: KOV); used part of the proceeds from the IPO to close deal in Ukraine.

In a press release, Tim Elliott, the President and Chief Executive Officer of Kulczyk Oil, stated. “We are pleased to be starting the drilling of our first well in Ukraine only a few months after closing our acquisition. The timely implementation of this first step in our plan to increase the production and reserves of KUB-Gas was made possible by the diligence and teamwork of the technical and operational teams of both KUB-Gas and Kulczyk Oil.”

Meanwhile, startup, UkrWindEnergo, just announced it is partnering with New Power Technologies to jointly develop, own and operate a 400 megawatt wind power park in Sovetskiy District, Autonomous Republic of Crimea, Ukraine. In August, Ukrainian President, Viktor Yanukovych, stated he was focused on bringing such projects to Crimea.

Ukraine’s wind potential, according to The Institute of Energy, Dnepropetrovsk State University, is estimated at about 140,000 wind turbines with up to 10 kWh each in annual capacity. Currently, the Ukrainian Wind Energy Association says the total capacity of wind power plants set up in the country is 1,200 kWt.

Polish billionaire buys Ukrainian gas firm in middle of Naftogaz debate

By admin

On Jun 15 2010

In energy

Polish richest man, billionaire Jan Kulczyk, whose fortune was estimated by Forbes to be $2.1 billion in March, is increasing his energy investments in Ukraine.

His Kulczyk Oil Ventures, through its subsidiary, Loon Ukraine Holding, bought a 70% stake in of one of Ukraine’s largest private producers of natural gas, KUB-Gas, for $45 million; the deal was completed last Friday. Kulczyk Oil Ventures, which went public in May on the Warsaw Stock Exchange (symbol: KOV); used part of the proceeds from the IPO to close deal in Ukraine.

Dariusz Mioduski, the president of Kulczyk Oil Ventures, told the Polish press that, “We plan to increase production in Ukraine and KUB-Gas has enough potential to at least double its current production.” Kulczyk Oil is also exploring opportunities across Central and Eastern Europe as well as in other hydrocarbon basins in the Middle East and Southeast Asia.

Poland’s foray into Ukraine comes in the midst of news from Russia that its Gazprom gas monopoly has offered to merge with Ukraine’s state energy firm, Naftogaz. Ukraine has significant gas resources that need development investment.

Ukrainian Billionaires Bilking Investors on Energy Asset?

By admin

On May 20 2010

In energy

Ukrainian billionaires Henadiy Boholyubov and Ihor Kolomoyskyy are involved in a lawsuit recently brought by Austrian Raiffeisen Zentralbank Osterreich AG against Ukraine’s largest oil company Ukrnafta for nonpayment of dividends. Boholyubov and Kolomoyskyy through their Privat holdings control a 42% stake in the energy company, but according to one analyst “effectively control the oil company through loyal management.”

The Austrian bank, which has significant investments across Eastern Europe, filed a lawsuit with the Commercial Court of the city of Kyiv in April demanding that Ukrnafta pay them a dividend in the amount of UAH 3.164mn.

Claims have also been presented to Ukrnafta by Kazimir Partners Investment Fund represented by Kazimir Ukraine Convergence Fund Limited for the dividends payout for 2005 amounting to UAH 7.6mn.

Analysts at research firm Millenium Capital write, “We see this news as negative. Information that the dividends were not paid to all shareholders confirms, once again, the lack of transparency in the management of the company.”

Back in January it was reported that Ukrnafta’s shareholders decided to pay 5.08 billion hryvnias, or $635.8 million, in dividends for 2006-2008. The government, which owns a majority stake in UkrNafta, was unable to recover its share of dividends due to a shareholder conflict with Privat’s owners who had been said to be resisting the government’s attempts to hold a shareholder meeting amid fears that the management would be reshuffled. Prior to the presidential elections, then Prime Minister and presidential candidate Yulia Tymoshenko had said she would return control over Ukrnafta from Privat back to the government if she won.