Smart Energy Group has launched wells at the Vasyschyvske field (Kharkiv region), according to a press release on Thursday.
“After unblocking the special production permits, it took us only a month to get the first company (Prom-Energo Product LLC – IF-U) back to work,” said Oleksiy Zayats, acting CEO of Smart Energy.
According to him, in order to comply with the laws, rules and regulations of the oil and gas industry, the company has carried out coordination procedures at all levels, diagnosed the equipment involved, as well as purchased new equipment, assembled a team and established its work.
“We will continue to invest in the development of gas production. The group is currently looking for opportunities to resume long-term development programs, which includes continuing the drilling program, building new infrastructure and modernizing existing equipment,” he added.
According to the press service, the day before the shutdown, the daily production of the group’s companies in Kharkiv region was about 450 thousand cubic meters. Due to the prolonged shutdown, well productivity decreased.
In particular, at the first stage of the Vasyschyvske field, production rates are 25 thousand cubic meters per day, which is half the level before the shutdown. In addition, in October 2023, the Russian aggressor attacked one of Ukrgasvydobuvannya’s gas production facilities, which resulted in significant damage to the equipment of the gas treatment unit.
“Now it will take time and investment to restore it,” Smart Energy summarized.
As reported, the State Service of Geology and Subsoil of Ukraine renewed three special production and development licenses in accordance with Order No. 293 of June 26, 2024: the Ostroverkhivske field of PJSC Ukrgasvydobutok, the Vasyshivske field of Prom-Energo Product LLC (both in Kharkiv region) and the Svystunkivsko-Chervonolutske field (Poltava region) of Arkona Gas-Energy LLC.
The renewal of these licenses became possible after the National Security and Defense Council of Ukraine (NSDC) amended its decision on personal sanctions against Vadym Novynskyi on December 1, 2022, on June 24, 2024.
The State Service of Geology and Subsoil suspended these three special permits in early May 2023, and Smart Energy estimated the daily downtime of the fields at 0.45 million cubic meters of gas and the loss of UAH 5.5 million in taxes.
Smart Energy Group is part of the Smart Holding investment group, implements projects for the exploration and commercial development of hydrocarbon fields and was one of the five largest private gas producers in Ukraine, producing more than one million cubic meters of gas per day at the beginning of the full-scale Russian military aggression.
Prior to the full-scale invasion, the hydrocarbon reserves of Smart Energy Group’s gas production assets were estimated at C1+C2 categories in the amount of 22.633 billion cubic meters of gas and 3.722 million tons of condensate.
Smart Energy’s oil and gas business is represented by Ukrgasvydobutok and Enwell Energy, a publicly traded British company.
For its part, Enwell Energy owns Regal Petroleum Corporation Limited and Arkona Gas-Energy in Poltava region, and Prom-Energo Product in Kharkiv region.
