The restructuring process for PJSC Ukrnafta headquarters in Kyiv is successfully completed. The project’s goals included increasing efficiency of the organizational structure, following the best international practices and introducing a modern management system in order to be able to fulfill the company’s strategy.

In-depth analysis demonstrated that past management model did not meet modern requirements. Many functions were duplicated, causing unclear accountability, too many management layers, excessive bureaucracy and many similar factors that prevented reaching the necessary quality and speed of decision-making for transforming the company.

As a result of reform, the HQ hierarchy layers were cut in half, while functional responsibilities and personal accountability for each remaining position were clearly defined. Restructuring also ensured removing doubling functions and eliminating the positions of deputy heads of units/ sections/ departments. The changes followed unified standards and rules, and were applied to all HQ units. The new organizational design was developed according to the best international industry practices.

In addition to achieving the primary goals of the restructuring project, the changes have downsized HQ personnel by 20%. Each employee was recognized individually, with full respect and a good compensation according to the Ukrainian legislation and the applicable collective labour agreement.

Mark Rollins, CEO of Ukrnafta:

“I believe that current reforms will allow Ukrnafta to become a strong player at the oil and gas market of Ukraine. We will be a competitive company and a respectable employer for our employees. We began our changes with the headquarters and over the last two months, we have renewed the HQ structure to fully comply with the company’s strategy and best international practices. We have restored coordination within the team and redirected colleagues of high potential into new responsibilities, particularly, into management of transformational projects. I am glad that the first stage of reforms is successfully complete”.

 For more information please contact press office: +38 044 239 14 93

 Note to editors:

Ukrnafta is the largest oil company in Ukraine. The company’s share in the nation’s oil and gas condensate production in 2015 is 67,9%, while the share in total gas production is 7,6%. Ukrnafta’s drilling divisions cumulatively own 58 drilling rigs, 1941 oil and 177 gas wells, and 537 filling stations that cover every region of Ukraine. The company is 50%+1 share owned by Naftogaz of Ukraine, a fully state-owned holding company.