«Ukrnafta» will not survive the fall of oil below $ 25. — Rollins

The head of «Ukrnafta» mark Rollins is sure that if the price of oil will fall below $ 25 per barrel, the company will collapse. He declared it in interview «VC».

Rollins: «Ukrnafta» has been pushed to bankruptcy due to Kolomoisky

«Fall of oil prices to 25 dollars a barrel, we can work almost «zero». It’s in full refusal of capital investment. But some capital investment, the company is still forced to do. Otherwise the company will collapse,» said Rollins.

According to him, a certain minimum that you must invest to maintain fixed assets in working condition is from 900 million to a billion hryvnia.

«We can afford to implement the program investment only if the price of oil is about thirty dollars per barrel. But as you can see, oil prices are now below this level, and it is possible that they may fall even lower,» — said the head of the company.

Rollins: «Ukrnafta» has been pushed to bankruptcy due to Kolomoisky

The head of «Ukrnafta» mark Rollins says that if the company were denied a license for extraction of natural resources, it will go bankrupt.

«On this account I have a very principled position, which I announced at the meeting of the Cabinet. I said that they certainly have the right to revoke my license, because I’m really late with the payment of taxes. But what happens after the revocation of licenses? Let’s evaluate what actually happens in this case,» said Rollin’.

According to him, if the government will withdraw the license, by law he will be obliged to stop production.

«Okay, we’ll stop oil production in Ukraine. Someone else can take on this role and resume production? No. «Ukrnafta» owns all of the rigs, wells, all equipment, all logistics. «Ukrnafta» owns everything. But the company will go bankrupt because we will have no income,» — said the head of the company.

In addition, Rollins said that after the procedure of deprivation of the license another twenty years or will last the trial about the bankruptcy of «Ukrnafta».

«During this time, no one will produce one drop of oil or gas from wells of Ukrnafta. And it would be a disaster. I have to lay off twenty-seven thousand people, as we will have no income. And all these people will be on the street without pay. Also there will be an environmental disaster. Therefore, from the state I need support, not a useless idea,» he said.

According to Rawlins there are people who just want to punish Kolomoisky.

«But this action to the detriment of own interests. Anyway, shoot yourself in the foot. It is useless and will not help the government, and the «Ukrnafta». Why devalue the business of the state? By the way, the oil that we will not produce, will have to be imported, most likely from Russia. And to pay for it will have a higher price. This is completely unacceptable,» commented the head of «Ukrnafta».

Rollins is sure that in the interests of Ukraine to support the sector of oil refining.

«In a world of very few countries who are 100% dependent on imported product,» he concluded.

As you know, in the third quarter of 2015 PJSC «Ukrnafta» has not fully complied with their tax obligations even, and thus underpaid in the budget of 23,4 million hryvnias.

We will remind, in August 2015 Ukrnafta has signed with Gpsmagazine to restructure its debt under 36% per annum.

In October the head of the SFS Roman Nasirov reported on the termination of the agreement on debt restructuring «Ukrnafta».

On October 22, the leadership and representatives of «Ukrnafta» did not come to the expanded Board to solve problems concerning tax debts of the company.

After that the SFS seized the property, including real estate, gas processing plants, wells and commercial products company «Ukrnafta» in the amount of 9,278 billion hryvnia in the framework of the recovery of outstanding tax liabilities.

«Ukrnafta» will not survive the fall of oil below $ 25. — Rollins 10.02.2016

Февраль 10th, 2016 by
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