NAFTA a.s.

Milica Knotkova
NAFTA a.s.


NAFTA a.s. is a Slovak private joint stock company. It is a mother company with headquarters situated in Gbely, west Slovakia, only 80 kilometres (km) from the Slovak capital Bratislava. The main business activities are:

  • geology exploration and survey;
  • drilling and workover job;
  • domestic crude oil and gas production;
  • operation of underground gas storage facilities and renting storage capacity to domestic as well as foreign customers;
  • mechanical engineering and manufacturing;
  • civil engineering and assembly works.

Company structure

NAFTA a.s. is currently undergoing major restructuring, which will result in a holding company where NAFTA a.s. will remain a mother company and its previous five enterprises will be transferred into 100 per cent daughter companies with rented assets.

Previous enterprises New daughter companies
Gas production and underground gas storage plant in Malacky NAFTA GAS, a.s., Malacky
Fax: +421 703 723 550
Exploration and production plant in Michalovce NAFTA VYCHOD, a.s., Michalovce
Fax: +421 946 420 307
Exploration and production plant in Gbely NAFTA ZAHORIE, a.s., Gbely
Fax: +421 801 921 113
Central workshops in Gbely NAFTA STROJ, a.s., Gbely
Fax: +421 801 921 421
Engineering and supplying plant in Gbely NAFTA ID, a.s., Gbely
Fax: +421 703 712 567

In addition, NAFTA a.s. has already established two 100 per cent daughter companies, a trading company NAFTA TRADE a.s., Bratislava and a leasing company NAFTARSKA Leasingova, a.s., Bratislava.

NAFTA has its origins at the beginning of this century and was founded as an oil exploration and production company.

Drilling started on 10 October 1913 as part of the Austria Hungarian Monarchy drilling works. Meanwhile, crude oil was found on 13 January 1914, a daily withdrawal rate reaching 15 tonnes, with the depths of reservoirs ranging from 140 to 260 metres.

The establishment of Czechoslovakia in 1918 also meant the founding of a state owned company, Statne Naftove Doly. In the post-war period the company was nationalised and production was modernised.

In 1971 the company first entered the business of gas storage through the construction of an underground storage complex at Lab.

NAFTA a.s. was privatised in the first wave of privatisation and incorporated on 1 April 1992.

Shareholders structure

Druha obchodna, a.s., Bratislava 45.9 %
Vseobecna Uverova banka, a.s., Bratislava 6.9%
Chase Nominees Ltd, London 6.8%
Creditanstalt- Bankverein Wien 6.5%

Executive Board of Directors

Juraj Grebac
Managing Director
Fax: + 421 703 71 2224
Jozef Cechovic
Financial Director
Fax: +421 703 712 228
Stefan Hoden
Geology Director
Vincent Gerthoffer
Technical Director
Fax: +421 703 712 373
Miroslav Michalek
Commercial Director
Fax: +421 703 712 313
Radoslav Svrcek
Investment Director
Fax: +421 703 712 445

Business activities

NAFTA TRADE a.s., Bratislava

  • trading with own hydrocarbon products and storage capacities;
  • other trading activities include continuous supplying of material and equipment required for the business activities of individual daughter companies;
  • commercial cooperation with foreign partners, focusing on contracting new gas capacities, drilling works and mechanical engineering products.
The fundamental task of this 100 per cent daughter company is to ensure maximum efficiency of all outputs generated by individual daughter joint stock companies which are using assets of NAFTA a.s., and to provide financial and commercial basement for all internal activities of NAFTA a.s.

NAFTARSKA Leasingova, a.s., Bratislova

  • providing equipment leasing operations.

NAFTA GAS a.s., Malacky

  • operation of underground gas storage, storing of imported gas.
Development of NAFTA's underground gas storage facilities is based on gradual conversion of depleted gas reservoirs. Favourable conditions for gas storing are provided by the geological horizons of the west Slovak region at the Vienna Basin. All storage facilities, utilised and projected, are situated in a small area (approximately 15 km), enabling NAFTA to develop the underground gas storage complex LAB as a complete unit of technically and functionally linked bodies, capable of being independent if necessary.

Gas storage facilities

Condition Locality Working gas capacity (mil. m3) Maximum daily withdrawal rate (mil. m3)
In operation Lab 1,2,3 1, 705 24.85
Under construction Lab 4* 785 8.50
Projected Lab 5 1,255 13.00
Planned West Slovakia** 858 10.90
South Slovakia*** 2,000 24.00
East Slovakia**** 205 2.50
Total 6,808 83.75

*an owner of this capacity is Pozagas a.s. (35 per cent share NAFTA a.s. 35 per cent SPP s.p, 30 per cent GDF)
**depleted gas fields Gajary-Baden, Zavod-Baden, Studienka, Jakubov
***depleted gas field Sered
****depleted gas field Ptruksa

The storage capacity of UGS complex Lab 1-4 exceeds demand of the Slovak and Czech Republics, and is prepared to support pipeline systems which supply to different parts of western, southern and central Europe with gas. This conclusion is based on evaluations of those projects which are currently in progress, a capacity estimation, reservoir and hydrodynamic characteristics, pressure relations between individual reservoirs, and pressure characteristics of the pipeline systems.

UGS Parameters Lab 1-3 1995 1996
Gas withdrawal/year (mil.m3) 1604.1 1543.5
Gas injection/year (mil.m3) 1493.0 1739.7
Seasonal withdrawal (mil.m3) 1457.6 1344.4 (for April 15 1997)
Maximum daily injection rate (mil.m3/day) 14.9 16.6
Maximum daily withdrawal rate (mil.m3/day) 18.6 21.3

NAFTA ZAHORIE, a.s., Gbely
NAFTA VYCHOD, a.s., Michalovce

  • on-shore drilling and completion of exploration and production well for domestic and foreign customers;
  • domestic hydrocarbons productlon performed by own drilling rigs;
  • drilling and completion of injection withdrawal wells for UGS;
  • workover jobs;
  • geological reservoir engineering service, field development works, hydrocarbons modification and treating;
  • drilling and completion of geothermal wells;
  • drilling and completion of methane production wells in coal seams.

NAFTA currently owns and operates the following drilling rigs:

  • F 100;
  • F 200 DH;
  • 320 3DH;
  • DIRR 558;
  • DIRR 5505;
  • DIRR 7005;
  • BIRR 8005;
  • and developed own mobile drilling rig GVS 3070 and GVS 1060.

Domestic production in 1996

Oil and gas fields are located in the Vienna Basin and the east Slovakia Neogen.

Crude oil 52,420 tonnes
Gas 317 mil.m3
Gasoline 18, 894 tonnes
Propane-butane 1, 261 tonnes

Previous drilling activities abroad

1960 Afghanistan
1979 -1990 Iraqi fields Majnoon, North Rumaila and Hamrin with Iraqi National Oil Company
1984 Germany VEB UGS Mittenwalde - gravel packing
1985-1986 Poland, Szgnig Sanok - gravel packing
1987 Sweden, five geothermal wells
1988-1989 Syria, where NAFTA worked as an operator in Omar field production facilities
1994-1995 Czech Republic, MND Hodonin, construction of oil gathering centre

Work in progress

1995 drilling for NAFTA-Danube Association in eastern Slovakia
1996 west Kazakhstan - oil field Kyrykmyltyk, Kazachstan, drilling for ANACO a.s, (NAFTA holds a 81 per cent stake)
Summer 1997 Ukraine, drilling for a Ukraine-Canadian partner

NAFTA STROJ, a.s., Gbely

  • engineering, manufacturing, maintenance and repairing of equipment used for exploration and production.

NAFTA is entitled to use the API monogram Specification 7 on manufactured products (Kelly, tool - joints, drill - steam subs, drill collars), the API monogram Specification 5 CT on tubing, and was granted a TUV certificate in accordance with AD - Merkblatt HPO for pressure vessels manufacturing and AD Merkblatt WO/TRD 100 for flanges.

In 1997 this enterprise ensured a complete overhaul of their own drilling rigs, including the machining of equipment required for drilling works in Kazakhstan and by the NAFTA-Danube Association.

Export in 1997 totalled 40.5 mil. SKK. Products were exported to the Czech Republic, Austria, the USA and Scotland. Cooperation with the last partner, FMC company from Scotland, gives prospects for machining in 1998.

Mechanical engineering programme

  • pressure technological equipment for treatment and storing of gaseous and liquid hydrocarbons as well as the drilling operations;
  • equipment for underground as well as on ground well completion;
  • pressure elements and equipment;
  • pressure vessels (up to ID 3 000 mm, maximum volume 100 m3) in accordance with TUV certificate;
  • non-pressure vessels;
  • special equipment which complies with strict ecological requirements;
  • general mechanical engineering production;
  • spare parts for drilling and production equipment;
  • special parts for drilling equipment.

NAFTA ID, a.s., Gbely

  • designing, engineering and constructing UGS, gathering centres, pipelines, cable networks, gas regulation stations and other gas storage facilities.

In 1997 the activity of this plant was focused on the construction of the UGS Lab 4, especially its technology for the treatment of injected and withdrawn gas, including pipelines, linking pipelines and cable networks. To realise construction, assembly and technology works, the plant primarily used their own know how and personnel.

Future prospects

1998 is a year of internal changes in the company organisation scheme, which will positively influence the continuity of company adaptation to the new market situation, as well as provide basic assumption for stable future development.

As the size of NAFTA underground storage facilities grew, and as finding oil and gas sources became domestically more difficult, gas storage developed into the largest and most profitable part of the business. Therefore, smooth development of gas storing capacities is the focus of future programme activities. The estimated investment expenses for the UGS projects in Lab (the 5th stage of UGS complex), Gajary, and Sered, amounts to more than 20 bn SKK, with 1/3 of expenses expected to be covered by production and operation capacities. The remainder has to be negotiated with financially sound partners and potential customers.

International activities will focus on field development, drilling and production works in the Kyrymyltyk field, the western part of Kazakhstan where NAFTA owns a mining licence. NAFTA has been an exclusive supplier of drilling works and there is a chance that the company will contribute to the supply of oil gathering and treatment technology.

Another planned business activity is to keep or even increase domestic gas production. There are two basic options, new gas sources, or intensification of those which are currently being used. Both of them are financially demanding and their development depends on their own capital accumulation.

Mechanical engineering, civil engineering and assembly works are closely tied to the development of the above mentioned activities, focusing on the construction of UGS, gathering centres, regulation stations, pipeline connections and the implementation of the energy saving programme. All of these should become more effective and competitive in the future.

Income statements for the previous three years

Income statement (SKK in thousands) 1994 1995 1996
Sales of products 2, 804, 641 3, 511, 919 3, 669, 285
Sales of fixed assets and fixed materials 516, 224 201, 015 480, 311
Commercial income 2, 288 2, 819 3, 321
Financial income 297, 906 62, 370 371, 456
Extraordinary income 4, 767 2, 485 2, 997
Other income 21, 613 18, 774 59, 276
Total income 3, 647, 439 3, 799, 382 4, 586, 646
Material costs less depreciation of fixed assets 1, 569, 403 1, 826 776 2, 308, 963
Depreciation and amortisation 306, 949 328, 176 402, 067
Personal expense 426, 565 525, 668 545, 452
Financial expense 324, 564 30, 758 438, 212
Extraordinary expense 7, 081 12, 216 3, 241
Total expense 2, 634, 562 2, 723 594 3, 697, 935
Income before taxes 1, 012, 877 1, 075, 788 888, 711
Taxes 434, 662 484, 848 375, 589
Net income for the year 578, 215 590, 940 512, 122

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