Naftogaz is a vertically integrated group whose activities span from gas extraction, import and supply through gas transmission and storage. The companies in which Naftogaz owns shares are major players in the gas and oil markets in Ukraine.
Nearly 90% of Naftogaz assets and revenues are related to the gas business. Separate subsidiaries operate in each market segment.
In 2015, Naftogaz supplied to the Ukrainian market gas volumes which are equivalent to 5% of Europe's total consumption.
Ukrtransgaz operates a major gas transmission system (GTS) with the entry capacity of 302.1 bcm/year and the exit capacity of 178.5 bcm/year in the direction of the EU. The annual volume of gas transmitted to Europe in 2015 was 67.1 bcm.
Ukrtransgaz also operates Europe's largest system of underground gas storage (UGS) facilities. It consists of 12 separate facilities with a total capacity of about 31 bcm (over a quarter of the EU's UGS capacity) and the injection capacity of 280 mcm/day. Ukrgazvydobuvannya (UGV) is Ukraine's largest company in gas upstream. In 2015, the company produced nearly 14.5 bcm of gas, accounting for 76% of the market.
Naftogaz is one of the largest groups in Ukraine by a number of parameters, including asset value and revenues.
1 Ukrnafta was transferred from investment in associates to investments in subsidiary starting from 22 July 2015. Ukrnafta was not consolidated in the group's financial statements as at 31 December 2013 and 31 December 2014.
2 As a result of the occupation of Crimea by Russia in 1Q 2014, Naftogaz currently does not control assets in Crimea.
3 Naftogaz is a party to the contract with Gazprom on gas tranmisstion to European consumers. This contract contradicts the requirements of the 3rd Energy Package currently implemented by Ukraine. Naftogaz has initiated an arbitration to bring this contract into accord with relevant national legislation, Ukraine's international commitments and the standard market practices of the Energy Community of which Ukraine is a contracting party.
4 Naftogaz owns minority stakes in some of regional gas distribution and supply companies, except for Kirovohradgaz where Naftogaz owns 51% of shares.
5 Naftogaz owns a minority stake.
1 Oil/condensate volumes are converted to barrel using a factor of 7.28 bbl per 1 t
2 Natural gas volumes are converted to oil equivalent using a factor of 169 cubic metres per 1 bbl
3 Estimation of reserves in Crimea as at 31 December 2014 was impossible because of the Russian occupation of the peninsula
Source: Report on estimation of Naftogaz proven, probable and possible hydrocarbon reserves (SPE-PRMS) by Ryder Scott Company. Does not include Ukrnafta.
In 2015, Naftogaz enterprises added new reserves of industrial categories (class code 111+121+122 according to the Classification of reserves and mineral resources of the state fund of mineral resources, approved by the Resolution of the Cabinet of Ministers No. 432 dated 5 May 1997):
Ukrgazvydobuvannya: 4,291 mcm of natural gas, 92 thousand t of oil and 130 thousand t of condensate;
Ukrnafta: 1,083 mcm of natural gas, 349 thousand t of oil and 120 thousand t of condensate.
Naftogaz and Chornomornaftogaz did not explore new reserves of industrial categories in 2015.
Naftogaz group companies produced in 2015 (class code 111):
Ukrgazvydobuvannya: 14528.06 mcm of natural gas (85.96 million boe), 117.96 thousand t of oil and 393.62 thousand t of condensate (3724 thousand barrel).
Ukrnafta: 1502.98 mcm of natural gas (8.83 million boe), 1577.36 thousand t of oil and 93.3 thousand t of condensate (12162 thousand barrel).
Naftogaz did not extract hydrocarbons in 2015.