Gas production costs more than its sale brings to Naftogaz, CEO says

State-owned Naftogaz of Ukraine spends more on producing natural gas than the company receives from its sale.

That’s according to CEO Yuriy Vitrenko, Ukrinform reports referring to his Facebook post.

"The truth is that Naftogaz systematically spends more real money on gas production than it receives from the sale of all gas extracted. The difference has traditionally been covered primarily by transit revenues or financed through loans. Even in our financial statements, the operating cost is higher. And the operating cost is not the full cost, it’s only a part of it," Vitrenko wrote.

He added that the most current cost figures would be disclosed in the reports covering the performance in the year’s first half, which Naftogaz plans to finalize in the near future.

As reported earlier, Ukrgazvydobuvannya over the eight months of 2021 produced 9.08 billion cubic meters of natural gas, which is 5% down year-on-year.

In January-August 2021, the company paid more than UAH 1 billion in rent payments to local budgets.

im