Despite the challenges posed by the war and the occupation of strategically important territories, the oil and gas industry remains a key element of Ukraine’s energy security. Oil and gas companies are adapting their business strategies to new realities. These include expanding operations in safe regions, investing in modern technologies and discovering new fields.

However, according to the National Bank of Ukraine, the inflow of foreign direct investment in the industry decreased by 14% in the first 11 months of 2024 compared to the same period in 2023. This signifies that in order to maintain a competitive presence in the global market, companies must adapt their business models, reduce costs and improve efficiency.

Challenges and outlook for the oil and gas market

In light of growing attention to ESG standards, new regulatory requirements and changes in energy policies require companies to adopt a comprehensive approach to development. Modern technologies, digitalisation of business processes and sustainable development have become priority areas for market participants. In accordance with the Resolution of the Cabinet of Ministers of Ukraine No. 1015-2024-p, the government has established priorities for the implementation of ESG standards. These include the mandatory disclosure of non-financial reporting, increased energy efficiency requirements and the integration of environmental criteria into public procurement. This creates new challenges for the business, including the need to adapt to stricter reporting standards and implement measures to reduce carbon footprint.

How BDO in Ukraine can provide support

BDO in Ukraine has many years of experience working with companies in the oil and gas exploration, production, refining and marketing sectors. Our team of professionals has a deep understanding of the market, international standards and regulatory requirements, which enables us to provide the best solutions to our clients. As part of the global BDO network, we have a presence in 166 countries and can offer access to best practice and expertise.

Our services include:

• Audit and preparation of IFRS financial statements to ensure transparency and effective financial management.
• Tax risk management and cost optimisation to minimise risks and increase profitability.
• Mergers and acquisitions (M&A) and business valuation consultations, including war damage analysis.
• Market analysis and research services to help make informed business development decisions.
• Cost management strategies and implementation of Microsoft digital solutions to improve the efficiency of business processes.

Comprehensive approach to success

We believe that oil and gas companies that innovate and adapt to today’s challenges will gain strategic advantage. Our mission is to help you find effective solutions that contribute to sustainable development and growth.

If you are looking for a reliable partner to support your business, our team at BDO in Ukraine is ready to assist. Get an online consultation today to build a successful future for your business, together!