Andrew Favorov resigns as head of Naftogaz Integrated Gas Business Unit and acting СEO of Ukrgasvydobuvannya (UGV).
The staff reshuffle is part of the continuing transformation of Naftogaz group. Gas production and sales have been integrated into one business unit until the end of the PSO (public service obligations) period. Ukraine committed to fully liberalize gas supply to households and ensure competition in this market segment starting from 1 May 2020. As the PSO period expires, Naftogaz is adjusting its structure to the new market conditions and reviewing the integration approach. According to the plans for further transformation of Naftogaz, the Integrated Gas Business Unit will be divided into Production and Commercial business units, which are being shaped now.
Under Andrew Favorov’s leadership, the business unit optimized the gas production program, introduced cost-benefit analysis of investment projects and continued the diversification of gas supplies from Europe.Thanks to those efforts, Ukraine entered the heating season 2019-2020 with the largest gas stocks in its UGS facilities over the past 10 years. This strengthened Naftogaz’s position in successful transit negotiations with Gazprom.
Andrew Favorov’s team did a great job, discovering new ways of gas production development in Ukraine, including superdeep drilling, tight gas and the Black Sea shelf.
“Andrew Fevorov’s market-oriented and progressive approach has played a major role in the transformation of Naftogaz. The company has established new reliable commercial partnerships in Europe and started to build a full-fledged retail business. The unit’s strategic achievements in gas production will be key for the company in the coming years. I’m grateful to Andrew for his bright and effective performance and I wish him luck in his future endeavors,”Naftogaz CEO Andriy Kobolyev said.
“I would like to thank my team and each and everyone at Naftogaz for this incredibleexperience. The eighteen month period is too short for high-sounding reports. Well, we have managed to maintain gas production and decrease production costs. But I think that the most important thing we have done is a complete revision of the HSE function and a fundamental change in attitude towards industrial safety and human life, which was initiated at all corporate levels. I express my special appreciation of the contribution made by well workers. Those who are ensuring uninterrupted gas production on a daily basis, even in these tough days. Decent remuneration, safety and labor conditions have always been my focus. Be safe!” Andrew Favorov added.
UGV first deputy CEO Oleksandr Romaniuk isacting as CEO on an interim basis.
NJSC Naftogaz of Ukraine