Ukrnafta Stops Production On Sakhalinka

According to a company release on Friday, Ukrnafta stopped production on Sakhalinkske field. Ukrnafta (UNAF: SELL) was a subcontractor for Poltavanaftogazgeologia, a subsidiary of the state-owned Nadra Ukrayiny. According to Ukrnafta’s management, the stoppage will cost the company 30 ths mt of oil and condensate a year (0.9% of the company’s 2006 output) and 100 mln cm of gas (3%). Previously, Ukrnafta requested the government sell it the Sakhalinka license. It said it was ready to pay UAH 300 mln (USD 59 mln), but the government opted to prolong its license with Nadra Ukrayiny.