The Nomination Committee of the Ministry of Economic Development and Trade of Ukraine has selected 3 candidates for the positions of independent board members of Naftogaz: Dr. Marcus Richards, Paul Warwick, and Charles Proctor. Their contracts will be signed and the appointments to the supervisory board will be made shortly.
The selection of independent board members of Naftogaz began on 19 January 2016. The Ministry of Economic Development and Trade of Ukraine with the financial assistance of the European Bank for Reconstruction and Development contracted Odgers Berndtson, an international executive search firm, to assist with the recruitment of suitable candidates. In the course of the selection process the members of the Nomination Committee evaluated over 100 candidates and interviewed 12 short-listed candidates. The Nomination Committee was looking for impeccable reputation, capacity to lead change in organizations, and relevant industry experience.
The supervisory board will be composed of 5 members, with 3 being independent and 3 representing the interests of the government. The independent supervisory board is created for the first time in the history of Naftogaz and is a part of the reform of corporate governance of this company. The reform is in line with the OECD guidelines for managing state-owned enterprises and is designed to minimize the risks of political interference with Naftogaz’s operations, as well as create the framework for professional management of the company in the interests of the Ukrainian people.
‘Naftogaz should be managed by a fully-fledged and independent supervisory board that will be a guarantee against corrupt practices for any vested interests. The reform of Naftogaz will be a litmus test for the SOE reform and an example for setting up independent supervisory boards in other state-run companies’, said Aivaras Abromavicius, Minister of Economic Development and Trade of Ukraine.
Dr. Marcus Richards – over 33 years of experience in oil and gas industry, including in executive positions at BP and Dana Petroleum. Presently involved in consulting companies and investment funds, visiting professor at Aberdeen Business School. Education background: Harvard Business School and PhD from University of Wales. For more details on Marcus Richards’ profile please follow this link.
Paul Warwick – oil and gas industry experience over 32 years, including in executive positions at ConocoPhillips and Talisman Energy. Country experience includes Norway, UK, Poland, Indonesia, countries of Northern and Western Africa, Middle East. Received Master’s degree from Cranfield Institute of Technology, studied at London Business School. For more details on Paul Warwick’s profile please follow this link.
Charles Proctor – 27 years of experience in oil and gas industry, including in executive positions at BP and Genel Energy, including in Azerbaijan, Angola, countries of the Middle East. Received Master’s degree from Downing College. For more details on Paul Warwick’s profile please follow this link.
Naftogaz is a vertically integrated group whose activities span from gas extraction, import and supply through gas transmission and storage. The companies in which Naftogaz owns shares are major players in the gas and oil markets. Naftogaz is one of the largest groups in Ukraine by a number of parameters, including asset value and revenues. Naftogaz is the largest taxpayer in Ukraine.
In March 2015, the Ukrainian government adopted a comprehensive reform package for the country’s energy sector to introduce competition, transparency and market prices for natural gas, diversify imports, and overhaul corporate governance of Naftogaz. The reform is supported by the European Bank of Reconstruction and Development and other IFIs. In December 2015 the government approved a new charter of Naftogaz, rules of procedure of the supervisory board, and rules of procedure of the management board. The supervisory board will exercise limited powers until April 2017, i.e., appointments to the management board and approvals of the financial and investment plans will be performed by the general shareholders’ meeting. Since April 2017, the supervisory board will exercise these powers.
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