Ukrnafta’s March 22 EGM to vote on vertically integrated structure

Ukrnafta (UX: UNAF UK) shareholders will vote on the creation of a vertically integrated structure for the company at an EGM on March 22, 2011, Interfax reported yesterday, citing the EGM agenda. No further details of the company’s plans were released. Ukrnafta is semi-integrated, operating in the upstream and downstream, with midstream represented only by gas processing. The state owns 50%+1 of Ukrnafta, but the management board is controlled by Privat Group, which holds ~42% of shares. Ukrnafta is Ukraine’s largest oil producer and second largest gas producer.