Prime minister Azarov held a meeting with Ukrnafta CEO

Prime minister Nikolai Azarov and minister for energy and coal Yuri Boiko held a meeting with Peter Vanhecke, executive board chairman of Ukrnafta PJCS today. Mr. Vanhecke laid out the results of analysis of the current situation at Ukrnafta made by the company's new management and outlined the proposed near-term action plan to optimise the company's operating model and stabilise its production.

The questions that were discussed include:

- Ukrnafta's initiatives related to a wider-scale application of modern oil&gas production technologies;

- Problems with inefficiency of the existing licensing and land allocation mechanism;

- Ways of further improvement of oil & gas royalties mechanism.

- IPO as the most feasible financing option for Ukrnafta's production growth plan.

All meeting participants agreed that production growth is a key strategic goal for the company. Mr. Vanhecke noted that a more detailed production improvement plan would be published in the near term.