international magazine
04 / 2007

The difficult growth

Chornomornaftogaz, the pioneers of Ukrainian (and soviet, from 1979) shelf oil&gas production, has had its share of suffering lack of financing for cash-intensive offshore production projects. Low attention of state authorities to this strategic direction resulted in chronic shortage of financing for the state-owned company (Chornomornaftogaz is a 100% subsidiary of state oil&gas company Naftogaz Ukrainy). Surge of natural gas prices in 2006 and this winter has become «a blessing in disguise»: today's management of Chornomornaftogaz, jointly with Ukraine's fuel and energy ministry and Naftogaz Ukrainy, are trying to attract top government officials and foreign companies to offshore development projects.