You're reading: Ukrnafta sells entire amount of oil at Friday auction

OJSC Ukrnafta, Ukraine's largest oil producer, sold the entire amount of oil (200,980 tonnes) it put up for an auction on September 24 at a starting price fixed at Hr 4,345 per tonne, the Ukrainian Interbank Currency Exchange has told Interfax-Ukraine.

Along with Ukrnafta, six more companies offered 6,600 tonnes of oil on September 24. Of the amount, 6,205 tonnes were sold at a starting price of Hr 4,345 per tonne.

Ukrnafta also sold 500 tonnes of gas condensate at a starting price of Hr 4,585 per tonne.

Yet, Simferopol-based state-run Chornomornaftogaz did not manage to sell 5,350 tonnes of gas condensate.

As was reported, the auction committee under Ukraine’s Economy Ministry fixed a starting price of oil for September 24 at Hr 4,345 per tonne, which was 3% up on the starting price at the previous auction held on the Ukrainian Stock Exchange on August 20, 2010.

The committee also fixed the starting price of gas condensate for the September 24 auction at Hr 4,585 per tonne, which was 2.8% up on the starting price of gas condensate sold at the previous auction.

Under Article 3 of the Law on the National Bank of Ukraine for 2010, the starting price of Ukrainian-produced oil and gas condensate at an auction should be fixed by the auction committee under the Economy Ministry on the basis of the customs value of oil registered over 15 days prior to the day of registration of bids for the auction.

A markup for quality is also taken into consideration when the starting price is being fixed.