Business news from Ukraine

“Ukrhazvydobuvannya started production from two more wells

Ukrgazvydobuvannya (UGV) has launched two more high-yield wells with a flow rate of 270,000 cubic meters and 120,000 cubic meters of gas per day, the press service of Naftogaz Group said Tuesday. According to it, the wells are 6,200 meters and 6,225 meters deep, drilled in the same field, in the same reservoir and almost simultaneously, so they are called “twins” in technical slang.

Thanks to the use of modern drilling machines, the skill of Ukrburgaz specialists and the reduction of accidents during the work, the wells were drilled in 8 months, whereas previously it took 2-3 years.

“New seismic and drilling data allowed our specialists to create a high-quality 3D model, which is one of the best in “Ukrgasvydobuvannya” and allows us to effectively plan the directions of further development of this field. The works on the field continue, and drilling of the next appraisal and production well will be completed soon”, – Oleg Tolmachev, Head of UGV, noted.

In total, since the beginning of 2024, UGV has already put into operation seven new high-yield wells, including twin wells.

As reported, UGV launched 86 new wells during 2023, of which 24 – with an initial flow rate of more than 100 thousand cubic meters.

In 2022, UGV produced 12.5 billion cubic meters of natural gas (marketable), which is 3% less than in 2021. At the end of 2023, the company’s marketable gas production amounted to 13.224 billion cubic meters, which is 0.679 billion cubic meters more than in 2022. The target for 2024 is 13.75 billion cubic meters.

Naftohaz Ukrainy owns 100% of Ukrhazvydobuvannya.

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“Ukrnafta” increases oil and condensate production by 2.9%, gas production by 5.8%

In 2023, PJSC Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022, to 1 million 409.9 thousand tons, the company’s press service said on Monday.

Last year’s production of natural and associated petroleum gas amounted to 1 billion 97.4 million cubic meters, which is 5.8% (60.4 million cubic meters) more than in 2022.

“I would like to thank the company’s team for not only holding the natural decline in a full-fledged war year, but also increasing production. In difficult conditions, you have made every effort to achieve results,” said Sergiy Koretsky, Ukrnafta’s CEO.

According to him, in 2024, Ukrnafta plans to drill new wells and intensify production, invite partners to the fields and replace old Soviet and Russian equipment with modern world-class models.

As reported, in 2022 the company produced 1.37 million tons of oil and condensate and 1.037 billion cubic meters of gas.

“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.

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“Ukrgasvydobuvannya” increased daily gas production by 3.31 mln cubic meters

Due to the commissioning of new wells, JSC Ukrgasvydobuvannya (UGV) has increased its daily production of commercial natural gas by 3.31 million cubic meters since the beginning of 2023, according to a press release from Naftogaz Group on Friday.

“Thanks to the commissioning of 54 new gas wells since the beginning of the year and an increase in the number of service operations in August, the average daily production of natural gas by Ukrgasvydobuvannya reached its highest level since June 2020,” the company said.

According to Oleh Tolmachov, Acting CEO of UGV, the achieved increase in average daily production will allow the company to exceed the results of the previous two years by the end of the current year.

“In difficult conditions, the Ukrgasvydobuvannya team continues to work to provide the country with its own energy resources. I am grateful to my colleagues for their professionalism,” Tolmachev said in the press release.

As reported, UGV aims to increase natural gas production by 1 billion cubic meters in 2023 to 13.5 billion cubic meters. In 2022, UGV produced 12.5 billion cubic meters of natural gas (commercial), which is 3% less than in 2021.

NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.

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Azerbaijan cuts associated gas production by 3%

Azerbaijan reduced associated petroleum gas production 2.9% year-on-year in Q1 2023 to 3.809 billion cubic meters, an oil and gas market source told Interfax.
The total included 985.81 million cubic meters of saleable gas, down 27.3%.
Associated gas accounted for 31.3% of Azerbaijan’s total gas production. Natural gas accounted for the remaining 68.7% and totaled 8.35 bcm.
Gas condensate production fell 1.5% to 1.289 million tonnes and accounted for 16.7% of total oil production. The remaining 83.3% or 6.434 million tonnes was crude oil.
The bulk of associated gas is produced at the Azeri-Chirag-Gunashli (ACG) fields, and most of it is re-injected into the reservoir to maintain pressure. The rest is supplied to State Oil Company of the Azerbaijani Republic (SOCAR) free of charge. Most of the condensate is produced at the Shah Deniz field, from where it is exported by the Baku-Tbilisi-Ceyhan pipeline.

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UKRNAFTOBURINNIA GAS PRODUCTION GOES DOWN BY 5% IN 2021

PrJSC Ukrnaftoburinnia (UNB) produced 691.3 million cubic meters of gas in 2021, which is 5% less than in 2020 (725.4 million cubic meters), according to a company press release on Tuesday.
According to the document, the volume of oil/condensate production decreased by 6% (by 4,200 tonnes) and amounted to 76,600 tonnes.
In general, gas production at Sakhalynske field last year amounted to 789.5 million cubic meters, and oil/condensate production – 80,800 tonnes.
“The UNB production indicators show a slight decrease compared to the previous year. The primary reasons for it included the forced reduction in the capital investment program and cancellation of the drilling program in the crisis year of 2020 and a natural decline in well flow rates at Sakhalynske field as it gradually depletes,” the press release says.
At the same time, in 2021, the company resumed its drilling program. In April, it completed new well No. 22 of 4,565 m. The initial daily flow rate of the well is 280,000 cubic meters of natural gas and 30 tonnes of condensate.
According to UNB, in 2021, the company completed workovers of eight wells. Well No. 54 was transferred from gas-lift to submersible pumping operation by installing a sucker rod pumping (SRP) at 3,251 m deep being the deepest sucker rod pump installation in Ukraine. Moreover, a large-scale investment project to construct a booster compressor station at Sakhalynske field is being implemented.
“UNB continues to implement investment projects aimed at further efficient development of Sakhalynske field and plans to drill another well and put it into operation in the first half of 2022,” the company said.
In the next two years, UNB also plans to expand the geography of production in Ukraine beyond Sakhalynske field.
“The team and I have very ambitious plans for 2022, aimed not only to maintain production at Sakhalynske field but also to find new investment opportunities outside it. Of course, the implementation of these plans will largely depend on what mechanisms the state will use to deal with the energy crisis in the country and how they will affect private gas companies,” Chairman of the Executive Board of Ukrnaftoburinnia Mykhailo Bakunenko said.
PrJSC Ukrnaftoburinnia is one of the largest private gas production companies in Ukraine. Since 2010, it has been developing Sakhalynske oil, gas and condensate field (Krasnokutsk district, Kharkiv region).

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UKRGAZVYDOBUVANNIA RAISES UP PRODUCTION AT KEHYCHIVSKE FIELD

JSC Ukrgazvydobuvannia has increased production at the Kehychivske field (Kharkiv region) thanks to the drilling of directional production wells that allow reaching promising gas deposits under difficult surface conditions, the press service of the company has said.
According to the press service, the company has drilled and put into operation three wells in this field in 2021, in particular, the latter, thanks to modern technologies and rapid penetration, was drilled and connected to the surface infrastructure system ahead of schedule. Now, it operates with a flow rate of about 80,000 cubic meters per day.
“Our specialists are planning further development of the field, because despite its depletion, it is promising – residual reserves reach 5.6 billion cubic meters of gas,” the company said.
At present, at the Kehychivske field, over the entire period of operation, 22.7 billion cubic meters of gas have been produced, 41 wells are in operation.

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