Ukrnafta says oil production could be terminated after suspension of transportation

17:15, 31.07.2015 1 min read

PJSC Ukrnafta has said that oil and gas production could be terminated because Ukrtransnafta has suspended oil acceptance and transportation without any reason, despite services being prepaid for.

"Due to the overstocking of tank farms Ukrnafta will be forced to suspend oil and gas extraction starting from 24:00 on July 31, 2015. This will lead to the termination of contracted oil supplies to refining plants. The unscheduled cessation of production could also lead to irreversible consequences of a man-made character," Ukrnafta said in a statement.

The leadership of Ukrnafta has appealed to Naftogaz Ukrainy Board Chairman Andriy Kobolev and Minister of Energy and Coal Industry Volodymyr Demchyshyn, asking them to intervene in the situation and prevent oil and gas production being stopped.

"Such a flagrant violation of the contractual obligations by Ukrtransnafta is an abuse of monopoly on the market and an anti-competitive behavior," Ukrnafta Executive Director Volodymyr Pustovarov said.