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Ukrnafta says may suspend output of oil and gas in Ukraine

The move is due to a denial from the national operator of oil pipelines Urktransgaz to transport hydrocarbons, Ukrnafta’s press service says

© EPA/SERGEI KOZLOV

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KIEV, July 31. /TASS/. Ukraine’s largest oil producing company Ukrnafta said it may suspend the output of oil and gas from 12am local time on July 31 due to a denial from the national operator of oil pipelines Urktransgaz to transport hydrocarbons, Ukrnafta’s press service said on Friday.

"Today the Ukrtransnafta company, without producing any explanations, has suspended oil intake and transportation from Ukrnafta in spite of pre-advance payments," the press service said in a statement. "As the company’s tank batteries are overstocked, the Ukrnafta company will have to suspend the output of oil and gas starting from 12am local time on July 31."

The company is afraid that unplanned suspension of the output might incur irrevocable technology-related consequences.

Ukrnafta’s Executive Director Volodymyr Pustovarov, the deputy chairman of the board of directors, said that the company is faced with a situation like this for the first time.

"If Ukrtransnafta refuses to resume its contract commitments, Ukrnafta will have to bring the case to a commercial court, aiming to protect its legal rights. Then Ukrtransnafta will have to compensate considerable losses to Ukrnafta and its business partners," he said.

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