Ukrnafta buys license for Kitvan area for UAH 6.5 mln

PJSC Ukrnafta purchased a special permit for the Kitvan oil and gas area (Ivano-Frankivsk region) for a period of 20 years at the auction of the State Service of Geology and Mineral Resources of Ukraine.

According to the UBIZ.ua platform, Ukrnafta offered UAH 6.5 million for the license, and the second participant in the auction, Eurotextile LLC, did not go beyond the starting price of UAH 5.017 million.

At the two previous auctions (September 24 and October 11), only Ukrnafta showed interest in the Kitvan area and the auction was canceled.

In addition, auctions for five more subsoil plots with oil and gas deposits have been cancelled due to a complete lack of offers. The matter concerns Taraschanska (starting price – UAH 77.14 million, Chernivtsi region), Liubynetska (UAH 48.309 million, Lviv region), Dobrobrativska areas (UAH 29.271 million, Zakarpattia region), as well as the Mezhyrichchia-Skhidny site (UAH 24.69 million) and Pivdenno-Monastyretsky deposit (UAH 19.286 million, both Lviv region).

As reported, the State Service of Geology and Mineral Resources sold 5 out of 11 special permits for subsoil plots with oil and gas deposits at auctions on September 24, 2024 for a total of UAH 1.177 billion.

Repeated auctions for the remaining six licenses were scheduled for October 11 and October 29, with prices reduced by 25% and 25% from the original.

Ukrnafta is Ukraine's largest oil extraction company and operates a national network of filling stations. In March 2024, the company took over the management of Glusco assets, and now operates 545 filling stations – 460 of its own and 85 under management.

The company is implementing a comprehensive program to renew operations and modernize the format of its filling stations. Since February 2023, Ukrnafta has been offering its own fuel vouchers and NAFTA Cards, which are sold to both legal entities and individuals through Ukrnafta-Postach LLC.

The largest shareholder in Ukrnafta is Naftogaz Ukrainy, which holds a 50% plus one share. In November 2022, the General Staff of the Armed Forces of Ukraine decided to transfer the corporate rights of the company, previously owned by private shareholders, to the state. The Ministry of Defense now oversees these shares.