Monday, February 27, 2006

Oil and Gas: Ukraine to auction gas reserves

The Ukrainian Ukrnafta Oil Company, (part of Naftogaz Ukraine) is to auction over 695 million cubic meters of natural gas from underground storages with a starting price of 422 hrivnas (over $84) per 1000 cubic meters.

A representative of the Ukrainian Agrarian Exchange, which is to hold the auction, told Tass the price does not include VAT, and the total cost of the auctioned gas reserves of 695 million 385 thousand cubic meters comprises 293.5 million hrivnas.

The buyer will have to make a 100-percent advance payment and also cover the costs of pumping the gas from the underground storages and delivering it to the consumer. If bidding prices are the same, the company supplying gas to the population will have an edge.

I can't wait to see Gazprom selling on eBay!