Working with Ukrainian Oil Industry, API Works to Bolster an American Ally’s Energy Security

Alexa Burr
Posted October 26, 2023

Russia’s invasion of Ukraine in February of 2022 signaled the start of the first major land war on European soil since the end of the Second World War, as well as a new era of global energy insecurity. Energy markets, especially in Europe – already challenged by the pandemic’s economic shocks – were forced to cope with less supply from Russia. Thankfully, supplies of U.S. LNG were increased to fill the void, demonstrating the value, flexibility, and staying power of American energy leadership.

But America has not merely stepped up as the biggest producer of both crude oil and natural gas in the last few years – it is also the world’s top industry innovator and a global leader in setting voluntary consensus standards to enhance the safety and sustainability of industry operations and assure quality practices.

Today marks a new step in the U.S. natural gas and oil industry taking American energy leadership around the world.

New Agreement Builds on U.S. Leadership

This week, API and Ukrnafta, Ukraine's leading national oil company, signed a memorandum of understanding (MOU) to promote the adoption of API natural gas and oil standards in Ukraine. The agreement affirms both parties’ commitment to enhancing Ukraine's emerging energy independence and supporting its transition away from Russian standards, equipment and processes.

A previous MOU between API and Ukraine’s national standards body, the State Enterprise “Ukrainian Scientific Center for Standardization, Certification and Quality Problems,” signed in 2022, focused on an information exchange and the adoption of API’s industry standards in Ukraine.

The new MOU with Ukrnafta goes further and supports the company’s shift away from Russian standards and toward API’s globally recognized energy standards.

Anchal Liddar, API’s senior vice president of Global Industry Services, stands with API staff and Ukrainian energy officials upon signing a memorandum of understanding (MOU) between both parties.

Ukraine has historically used Russian standards-based equipment and operations, which vary widely from API standards and has cemented their reliance on the Russian supply chain.

Ukrnafta has an acute need for the accelerated adoption of API standards across the value chain since they can no longer obtain replacement equipment that is manufactured in Russia, thus compromising Ukrainian natural gas and oil production and energy security. Ukrnafta’ s utilization of API standards will align Ukraine’s oil and natural gas industry with the West, both facilitating market access with U.S. and western companies – and galvanizing their energy independence from Russia.

What They’re Saying

“API is the world's premier standards-setting organization for the natural gas and oil industry. Our organization is honored to provide a measure of stability and embark on this new cooperative relationship with Ukrnafta at a time of ongoing peril for Ukraine,” said Anchal Liddar, API senior vice president of Global Industry Services. “This new affiliation solidifies our shared vision of strengthening Ukraine's energy infrastructure and independence based on API’s world-class standards.”

Serhiy Koretsky, director of Ukrnafta PJSC, noted: “The memorandum of understanding with API will allow us to significantly increase our efficiency and attract the best examples of world technologies to the development of the Ukrainian oil industry. This is one of the key transformation projects of the company in the coming years, which will ultimately allow Ukraine to achieve the desired energy independence. We are honored to work together with such a respected and influential organization as API.”

MOU Specifics

The MOU establishes a framework between API and Ukrnafta for the following:

• Promoting the adoption and harmonization of API standards across Ukraine's oil and gas industry;
• Involving Ukrainian experts on API standards committees;
• Providing guidance on usage and implementation of API standards and safety programs; and
• Collaborating on standards-related training programs and seminars.

The framework outlined in the MOU supports Ukraine’s intent to reduce its reliance on Russian energy, while expanding its own supply chain and ability to work with new partners. Without question, this will help create a more robust, resilient Ukrainian energy industry that is aligned with international best practices. 

API’s International Role

Taking a quick step back, API was originally formed in 1919 as a standards-setting organization. The organization’s Global Industry Services department has grown to become the worldwide leader in convening subject matter experts across every segment of the natural gas and oil industry to establish, maintain and distribute consensus standards.

API has developed more than 800 standards to enhance operational safety and environmental protection in use around the world.

API standards are developed under API’s American National Standards Institute accredited process, ensuring that the API standards are recognized not only for their technical rigor but also their third-party accreditation which facilitates acceptance by state, federal, and increasingly international regulators.

Stability and Progress

In the face of challenging geopolitical circumstances, the collaboration between Ukrnafta and API represents a big step toward fortifying Ukraine's energy security – much as the delivery of U.S. LNG helped our European allies in the face of Russian aggression.

By embracing API's globally recognized natural gas and oil standards, Ukraine not only diversifies its energy supply chain but also aligns its operations with international best practices.

This partnership not only strengthens the resilience of Ukraine's energy industry but also fosters a sense of stability and progress in the midst of tragedy and uncertainty.

As the world navigates complex energy landscapes, this collaboration stands as a testament to the power of international cooperation and shared standards in bolstering the energy security of America’s allies.