Barbarian Management

In Chernihiv region, there is a small village of Varva, founded back in the 11th century. But this is not the only curious thing about this village. The other one is that there is the largest gas processing plant in Ukraine – Hnidyntsi GPP – located near the village.

This GPP is one of the newest in Ukraine; it belongs to “Ukrnafta” and produces liquefied gas (and we all know that Ukraine produces much less of it than it consumes, that’s why it has to import a significant amount of liquefied gas from the Russian Federation). The gas processing plant also prepares oil for further processing at the refinery.

Next to Hnidyntsi GPP, there is the Leliakivske gas-condensate field and other potential fields developed by “Ukrnafta”. The GPP has a large fleet of containers for storage of finished products, railway access road; it fully performs its production tasks.

One should be proud of such an enterprise. We could be proud as well. But for one nuance. “Ukrnafta” is closing down Hnidyntsi GPP.

“This makes no sense!” one would say. I’m trying to make head or tail of it myself. Here is what we know so far:

1. Over the past year, 30 to 40% of the staff have been dismissed from the enterprise;

2. About a year ago, Hnidyntsi GPP was headed by the manager of another “Ukrnafta” enterprise – Kachaniv GPP. The specialists he brought along, began to study and apply the technological processes of the Hnidyntsi GPP in their own GPP – Kachaniv;

3. Kachaniv GPP is smaller than Hnidyntsi one and does not have a railway service, that is, it has expensive logistics and additional conditional-constant expenses connected with the smaller scale of production.

And here are the questions to PJSC “Ukrnafta”, which arise from a helicopter vision of the situation:

1. I have heard that the working methods of the new head of Hnidyntsi GPP in the production of liquefied gas at the Kachaniv gas processing plant can be hardly called legally sound. It seems that it is beneficial to certain people to have the same working methods implemented at the plant near Varva. Looks like the beneficiary and the management of “Ukrnafta” might make profit from the schemes like this. But what will the stoppage in gas production bring to the employees of Hnidyntsi GPP, their families and the residents of Varva, whose budget is mostly formed from the taxes paid by the plant’s employees?

2. What are the proposals of the management of Ukrnafta regarding the future employment of about 800 employees of the GPP?

3. Why is “Ukrnafta” bringing the best manufacturer of the scarce product to the brink of closure?

I am expecting convincing answers from Rollins and his “renewed team”. I really want to believe the recent press release of “Ukrnafta” saying that Hnidyntsi GPP is closing down on May 21 for temporary repairs, and not to be sent for scrap.

But for the time being, I trust the participants of – the way they put it – the largest in the history of Varva meeting of the inhabitants of the village, which I joined together with Oksana Syroyid. Desperate and angry employees of the GPP talked about a flock of “metal scrapers” who started frequenting Varva and monitoring the situation with the closure of the GPP.

We will stay alert.

Viktoriya Vojtsitska
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