Ukrnafta independent supervisory board confirmed with five members elected

Naftogaz Group company Ukrnafta will now operate under the control of the newly elected supervisory board featuring three independent members and two shareholder representatives appointed by the Ukrainian Ministry of Defense of Ukraine and Naftogaz.

The composition of the supervisory board was approved at a general meeting of company shareholders on March 6 in Kyiv.

Naftogaz Group has taken another significant step towards implementing corporate governance reform at strategically important state-owned Ukrainian enterprises. We will continue the consistent implementation of corporate governance at all of the Group’s key enterprises. I am confident that the election of Ukrnafta's independent supervisory board will improve efficiency and ensure appropriate control over the company’s activities in accordance with OECD requirements," commented Naftogaz Group CEO Oleksiy Chernyshov.

The election and appointment of the board was carried out in accordance with OECD Guidelines on Corporate Governance of State-Owned Enterprises. The following three independent members were selected as a result of a transparent and independent competition:

  • Tim Dodson has over 40 years of experience in extraction and geology. He is former executive vice president of exploration at Equinor. Currently  serves as chairman of the board of directors at Norwegian company Ennox Technology Sdn Bhd, specializing in the processing of oil waste.
  • Ireneusz Fąfara is a specialist in the financial, industrial, and oil and gas sectors with more than 30 years of experience who for eight years led the largest oil refining company in the Baltic countries, Orlen Lietuva, with a plant processing 10 million tons of oil per year.
  • Duncan Nightingale has over 30 years of experience in the oil and gas industry. He is an international expert in the search for oil and gas reserves in Latin America, Europe, Africa, and the Middle East. He is currently CEO and board member of Blacksteel Energy, where he oversaw the modernization of production capacities.

The company's shareholders will be represented by Liudmyla Darahan from the Ukrainian Ministry of Defense and Roza Tapanova appointed by Naftogaz, who was also the state representative in Ukrnafta's previous supervisory board.

BACKGROUND: The largest shareholder of Ukrnafta is NJSC "Naftogaz of Ukraine" with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine announced the decision to transfer the corporate rights of the company, which belonged to private owners and is now managed by the Ministry of Defense, to the state.

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