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
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
‘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.
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.
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.
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.
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.
About Odgers Berndtson
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