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    Oilfield contractors should cut ties with Russia, says Naftogaz official

Summary

The call from Naftogaz's head of production comes as fighting has forced certain gas facilities in Ukraine offline.

by: Callum Cyrus

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Political, Territorial dispute, News By Country, Ukraine

Oilfield contractors should cut ties with Russia, says Naftogaz official

Naftogaz's deputy director of production has called on oilfield service contractors to stop dealing with Russian clients and exit the country while Moscow continues its infiltration of Ukraine.

Oleg Tolmachev, appointed by the Ukraine state-owned oil and gas company in early 2021, believes contractors like Halliburton and Schlumberger should close Russian branch offices and operations, following the lead of IOCs and investors that have exited the country in recent days.

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In an open letter, Tolmachev stressed the human toll of the conflict. "Please terminate your business in Russia immediately and shut down your offices in Russian Federation," he wrote. "My employees and their families in Kharkiv, Donetsk, Lugansk and Poltava regions are getting killed and wounded by military forces of the Russian Federation."

Tolmachev published the letter in a personal capacity. He joined Naftogaz in January after a two-decade spell with various US shale gas producers.

Naftogaz's oil subsidiaries Ukrtransnafta and Ukrspetstransgaz remained unaffected by the hostilities as of February 24, but its gas production unit UkrGasVydobuvannya took the precautionary measure of suspending several facilities. UKPG Lobachivske, Borivske, Kapitanivske, Muratovske and Vilkhivske 1-2 were all judged too close to the conflict's demarcation line to operate safely.

Staff at the Olyshivka gas storage facility prevented a security breach by "diversionists" on March 1, but Naftogaz says the fighting continues in the operating area of its Donetskoblgaz distribution unit. Kyiv had awarded a 49.9% stake in Donetskoblgaz to Ukrtransnafta in September 2021, amid an investigation into "illegal actions" of company officials. The former owner of Donetskoblgaz has fled to Russia.