Business news from Ukraine

In January 2024, PJSC Ukrnafta increased oil and condensate production by 0.2% (by 0.27 ktonnes) compared to January last year to 121.08 ktonnes, and gas production by 8.3% (by 7.77 mcm) to 100.91 mcm.

According to the company’s press release, the total production in oil equivalent of hydrocarbons amounted to 207.87 ktonnes, which is 3.5% more than in January 2023 (200.92 ktonnes).

“I am grateful to the company’s specialists who continue to increase the production of Ukrainian resources for the second year in a row. We continue to drill new wells, implement production stimulation measures and upgrade old equipment to API standards,” Ukrnafta CEO Serhiy Koretsky said in a statement.

As reported, in 2023, Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022 – up to 1 million 409.9 thousand tons, gas production – by 5.8% (by 60.4 million cubic meters), up to 1 billion 97.4 million cubic meters.

“Ukrnafta’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively.

“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of 537 filling stations, of which 456 are in operation.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer the corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense, to the state.

PJSC “Ukrnafta” in January-July 2023 increased production of oil with condensate by 4.5% (by 36 thousand tons) compared to the same period of 2022 – up to 828 thousand tons, the press service of the company reported.

The average daily production of oil with condensate for seven months of 2023 was 3.9 thousand tons, 2022 – 3.7 thousand tons, 2021 – 4 thousand tons.

Ukrnafta’s gas production in January-July 2023 increased by 6.8% (by 40 million cubic meters) compared to the same period of 2022 – to 628 million cubic meters.

Average daily gas production for seven months of 2023 amounted to 2.964 million cubic meters, 2022 – 2.772 million cubic meters, 2021 – 3.015 million cubic meters.

According to the press-service, for seven months of the current year 65 workovers, 18 stimulations, 15 stimulations without workover crews, 13 coiled tubing operations were carried out at the company’s fields. 21 wells were brought out of inactivity.

“Cumulatively, these and other measures brought additional 52 thousand tons of oil and 28 million cubic meters of gas,” the company said.

In addition, Ukrnafta in January-June 2023 transferred 12.32 billion UAH of taxes to budgets of all levels, including 1.187 billion UAH of income tax for the first quarter and 2.077 billion UAH – for the second quarter.

As reported, Ukrnafta, which has been fully under state control since the end of 2022, has set a strategic goal to double its oil and natural gas production to 3 million tons and 2 billion cubic meters respectively by 2027. In 2023, the company plans to increase oil production by 5.8% (up 0.077 million tons) year-on-year to 1.447 million tons, and gas production by 0.3% (up 0.003 million cubic meters) to 1.04 billion cubic meters.

On November 5, 2022, the Supreme Commander-in-Chief decided to seize the shares of Ukrnafta and Ukrtatnafta (except for the controlling and blocking stakes of Naftohaz Ukrainy, respectively) as state property during martial law. Prior to the seizure, the structures of Igor Kolomoisky and Hennadiy Bogolyubov owned about 42% of Ukrnafta and, together with other partners, a controlling stake in Ukrtatnafta.

As of the end of March 2023, Ukrnafta had 89 fields with 23 million tons of proven reserves and with 1,806,000 active oil wells and 152 gas wells. The company operates 537 gas stations, of which 28 have been modernized. Sales at them this year are expected to reach 350,000 tons, or about 7% of the market. Last year, wholesale and retail sales of petroleum products totaled 1.665 million tons.

At the end of June 2023, the Antimonopoly Committee of Ukraine (AMCU) allowed Ukrnafta to take control of stakes in the authorized capitals of Ukrnaftoburnia, Sakhalinskoye, Sirius-1, and East Europe Petroleum, which operate in the Sakhalin gas condensate field. In general, the Sakhalin field will produce 844.3 million cubic meters of gas and 86 thousand tons of oil and condensate in 2020 and 789.5 million cubic meters and 80.8 thousand tons in 2021.