Ukrnafta plans to create a standalone oilfield service company

Ukrnafta Ukrnafta(UX: UNAF UK) yesterday launched a strategic review of its drilling and work-over service operations to establish a standalone service company based on its current service assets. Ukrnafta plans to involve a multinational oilfield service partner company to ensure international standards of technology and operational practices. The project is to be finalized in 1Q12. Antonina Davydenko: combining the existing assets into one entity is a reasonable step in optimizing the company’s structure. However, the amount of investment needed to modernize the existing equipment is yet unspecified. The company also did not comment on whether an international partner will own a share in the newly created entity.