Andrew Favorov resigns as director of Naftogaz’s integrated gas business

Apr 1, 2020 | Category: Official
Andrew Favorov resigns as director of Naftogaz’s integrated gas business

Andrew Favorov leaves the position of the Director of Integrated Gas Business of "Naftogaz of Ukraine", as well as the person who temporarily exercises the duties of the General Director of JSC Ukrgasvydobuvannya.

Personnel changes are performed within the framework of the transformation of Naftogaz Group. The activities on gas production and sale were integrated into one division for SU (special undertaking) period. Since May 1, 2020, Ukraine undertook to liberalize the market for gas supply to domestic consumers fully and to ensure conditions for competition in this segment. The SU is terminated, and therefore Naftogaz is adapting the structure to new market conditions and revising the logic of integration. The integrated gas business, according to plans of further transformation of NAK “Naftogaz of Ukraine”, will be divided into two divisions – the production and commercial activity. Currently, they are being formed.

Under the supervision of Andrew Favorov, the division optimized its gas production program, implemented an assessment of the cost-effectiveness of investment programs and a continued diversification of gas supplies from Europe. Owing to this work, Ukraine entered the heating season 2019-2020 with record reserves of gas for the last ten years, this strengthened the position of Naftogaz in the negotiations with Gazprom on transit, which have been completed for the country.

Andrew Favorov’s team made a great work in search of new directions of development of Ukrainian gas extraction, in particular, development of deep formations, tight gas deposits, black sea shelf.

"Andrew Favorov’s market, progressive approaches played an important role in the process of transformation of Naftogaz. The Company has received new reliable commercial partners in Europe, has started the creation of a full-fledged retail business. And the strategic development of the division in gas production will be key for the Company’s development in the coming years. I am sincerely grateful to Andrew for such bright and effective cooperation, and I sincerely wish further success”, – said Andriy Kobolyev, Chairman of the Board of Naftogaz.

“I thank my team, all the staff of Naftogaz for this extraordinary experience. One and a half years is not the period which is worth reporting loudly about. Thus, we retained gas production, reduced production costs, as for me, the main thing that was done was the reloading of the function of labour protection and industrial safety, the initiation of the changes at all levels of the Company in attitude to issues of safety production, the value of life. I want to especially note the contribution of people who work directly "at the well'' those who daily – even today's difficult days – provide for the uninterrupted gas production. Good wages, safety and working conditions at the production site were always the focus of my work. Please take care of yourself!” - added Andrew Favorov.

The person who temporarily acts as CEO of JSC "Ukrgasvydobuvannya",  Oleksandr Romaniuk, first Deputy Director-General.