Naftogaz Of Ukraine News

The Gazprom headquarters hosted today a briefing session led by Alexey Miller, Chairman of the Company's Management Committee dedicated to the Company's activities this winter. Special attention was given to the contracts for gas supply to Ukraine and its transit to Europe. It was pointed out that today was the sixth anniversary of the Ukrainian Government approving the results of the negotiations on Russian natural gas supply to Ukraine from 2009 to 2019 and on the terms and conditions of its transit via Ukraine to Europe. These historic documents were effective under different Governments in Ukraine. They have determined and will determine the cooperation between Gazprom and Naftogaz of Ukraine in the gas sector until late 2019.

Gazprom filed a lawsuit in Stockholm International Arbitration Court seeking to recover USD 4.5 billion in debt from Naftogaz of Ukraine due to the company's non-compliance with obligations under Contract No. ?? dated January 19, 2009 for natural gas purchase and sale between 2009 and 2019 (Contract), as well as its considerable outstanding debt for natural gas supplied under the Contract and non-payment of current supplies. Starting from 10:00 am (Moscow time) on June 16, 2014, Gazprom will supply Naftogaz of Ukraine with natural gas only in prepaid volumes according to contractual terms. In this respect, Naftogaz of Ukraine is obliged to secure natural gas transit to third countries in full compliance with terms of the effective Contract No. ????

Today at 10:00 (Moscow time), in full compliance with the effective contract, Gazprom switched Naftogaz of Ukraine to a prepayment of gas supplies. The decision was made owning to persistent non-payments by Naftogaz of Ukraine. The overdue debt of the company for the supplied Russian gas equals USD 4.458 billion: USD 1.451 billion – for November and December 2013 and USD 3.007 billion for April and May 2014. By the proforma invoice for June the payments also were not received. Starting from today the Ukrainian company will receive only prepaid volumes of Russian gas.

Keppel FELS say that the contract with Naftogaz of Ukraine was cancelled because certain conditions within the timeline were not met. On 4 December 2012 Keppel FELS had announced the signing of a conditional contract between them and Ukraine’s National Joint-Stock Company, “Naftogaz of Ukraine” (Naftogaz), to construct two semisubmersible drilling rigs, value approximately US$1.2-billion. This followed an earlier announcement made on 21 November 2012 that Keppel FELS had been selected as winner of the tender to construct the two semi-submersbles. The rigs were to have been built to Keppel FELS’ proprietary DSSTM 38U design, customised for the Black Sea environment. The harsh weather conditions there include extreme freezing temperatures, storms with strong winds and heavy seas.

Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has signed a contract with Ukraine's National Joint-Stock Company "Naftogaz of Ukraine" (Naftogaz), to construct two semisubmersible drilling rigs worth about US$1.2 billion. The contract will be effective upon final corporate approvals. This follows an earlier announcement made on 21 November 2012 in relation to Keppel FELS being selected as winner of the tender to construct the two semisubmersible drilling rigs. The rigs will be built to Keppel FELS' proprietary DSSTM 38U design which is customised for the Black Sea environment. The harsh weather conditions of the Black Sea include extreme freezing temperatures, storms with strong winds and heavy seas.

Keppel FELS signs contract to construct the rigs for Ukraine's National Joint-Stock Company "Naftogaz of Ukraine" (Naftogaz). The contract is worth about US$ 1.2-billion, but is dependent upon final corporate approvals. The rigs will be built to Keppel FELS' proprietary DSSTM 38U design which is customised for the Black Sea environment. The harsh weather conditions of the Black Sea include extreme freezing temperatures, storms with strong winds and heavy seas. Durable grades of steel with increased thickness will form the basis of the structural design of the hull and pontoons of the rigs. They will have winterisation features such as machinery cladding, advanced heating systems to prevent equipment and pipe freezing as well as enhanced air conditioning for the living quarters.