Oil at $25 a barrel is critical for Ukraine’s leading oil company “Ukrnafta”

Source : 112 Ukraine

According to Mark Rollins – CEO at “Ukrnafta” – so far the company has no financial losses, cash flow is positive
12:55, 10 February 2016

Oil price lower than $25 a barrel may be critical for Ukraine’s leading oil and gas company “Ukrnafta”, CEO Mark Rollins said in an interview to “Ekonomicheskaya Pravda”.

According to the CEO the company has no financial problems so far, cash flow remains positive. “In case oil prices drop to $25 a barrel, we will barely break even. And we will refuse from all capital investments. We will still have to resort to some capital investments, though. Otherwise the company will simply collapse. There is a certain minimum we have to invest to support basic funds, an estimated 900 million to 1 billion hryvnas”, - Rollins said.

 “We will be able to operate this way with oil prices at $30 a barrel. So far the prices are lower and we cannot rule out the possibility that they will drop even lower”, - the CEO added.

 “Plus, we don’t have any cash held for reserve”, - he pointed out.

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