Business news from Ukraine

Business news from Ukraine

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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POLISH PGNIG PLANS TO INVEST $50 MLN IN GAS PRODUCTION IN UKRAINE

Polish PGNiG plans to invest $50 million in gas production in western Ukraine at the first stage as part of a partnership with the Energy Resources of Ukraine (ERU) group of companies, MP Andriy Gerus has said.

“At the first stage, it is planned to invest $50 million. And in the future, the volume of investments may reach up to $500 million,” he wrote on his Facebook page after attending the 24th Gazterm gas conference in Poland.

As reported, early December 2019, the Polish company PGNiG SA and the Ukrainian group of companies ERU signed an agreement on the exploration and production of natural gas in Lviv region. The agreement provides for the drilling of an exploration well up to 2,500 meters deep at the initial stage, and measures to design the location of other wells.

In May 2021, the Antimonopoly Committee of Ukraine (AMCU) allowed PGNiG SA to acquire over 50% in Karpatygazvydobuvannia LLC, which belongs to ERU.

Energy Resources of Ukraine (ERU) is a group of companies with foreign investments specializing in the implementation of projects in the Ukrainian energy sector. It is one of the largest private importers of natural gas and electricity to the country. ERU Group belongs to Yaroslav Mudry and Dale Perry.

PGNiG is the largest oil and gas company in Poland, engaged in the development of gas and oil fields, production, storage and transportation of energy resources, as well as construction and development of oil and gas transport networks, export and import of gas.

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UKRGAZVYDOBUVANNIA REDUCES GAS PRODUCTION

Ukrgazvydobuvannia in January-July 2021 reduced gross production of natural gas by 5.2% (by 437 million cubic meters) compared to the same period in 2020, to 7.932 billion cubic meters, the press service of the company said.
According to its data, gross production for the seven months decreased by 5.1% (by 406 million cubic meters) compared to January-July 2020, to 7.493 billion cubic meters.
Underfulfillment of the production plan is 125 million cubic meters and 51 million cubic meters respectively
In July 2021, gross gas production decreased by 4.8% (by 57.5 million cubic meters) compared to July 2020, to 1.144 billion cubic meters, marketable – by 4.5% (by 50.8 million cubic meters), to 1.088 billion cubic meters.
To stabilize production indicators during January-July 2021, the company commissioned 25 new wells, carried out 80 well workovers, performed 321 coiled tubing operations, 71 hydraulic fracturing operations, carried out nine sidetracking operations, equipped a remote monitoring system for 197 high-production wells.
As reported, Ukrgazvydobuvannia, 100% of which belongs to NJSC Naftogaz Ukrainy, in 2020 reduced production of marketable gas by 1.2% (by 170 million cubic meters) compared to 2019, to 13.45 billion cubic meters, and the company’s gross production amounted to 14.23 billion cubic meters.

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SMART ENERGY REDUCES PRODUCTION OF GAS

Smart Energy in January-June 2021 reduced gas production by 0.2% (by 300,000 cubic meters) compared to the same period last year, to 199 million cubic meters, the press service of the group said.
In addition, the production of gas condensate by the companies of the group increased by 1.2%, to 17,800 tonnes, liquefied propane-butane – by 12.3%, to 5,100 tonnes.
According to the press service, despite the natural depletion of reservoir energy in the productive horizons of the fields developed by Smart Energy, the group continues to maintain production volumes at a stable level.
“We are keeping our production of natural gas stable, primarily due to our new wells in Poltava region. Taking into account this fact and positive dynamics of price for natural gas, we are planning to spud at least two more new wells in H2 this year,” Serhiy Hlazunov, the CEO of Smart Energy Group, said.
“In February the company spudded one more new development well, No. 29, at Svyrydivske field as well. The target depth is 5,450 meters. Currently the well has reached a depth of approximately 5,250 meters. Drilling operations are ahead of schedule. Subject to successful testing, production hook-up is now expected by the end of Q3, 2021,” the report says.
“Arkona Gas-Energy is getting ready to development of Svystunkivsko-Chervonolutske field (Poltava region). The company is completing supplementary prospecting and exploration as well as design works. During next two months it is spudding well No. 4. Start of 3D seismic is planned for Q4 this year as well,” the company said on its website.
“Preparations for upgrade works to the gas processing plant are in progress. The upgrade includes equipment modernization and increase to the liquids tank storage capacity. The works are scheduled to commence in Q4, 2021,” it said.

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UKRAINE INCREASES GAS PRODUCTION BY 3.6% IN JAN-APR

Production of natural gas in Ukraine in January-April 2019 increased 3.6% or by 245.1 million cubic meters (mcm) year-over-year, to 7.016 billion cubic meters (bcm), according to a preliminary report of JSC Ukrtransgaz. According to the calculations of Interfax-Ukraine, gas production by JSC Ukrgazvydobuvannia amounted to 5.14 bcm (2.7% more from January-April 2018), PJSC Ukrnafta to 382.9 mcm (11.2% more), other companies to 1.493 bcm (5% up).
In April 2019, gas production amounted to 1.741 bcm (4.3% up from April 2018), in particular production by Ukrgazvydobuvannia amounted to 1.272 bcm (2.5% more), Ukrnafta to 93.7 mcm (12.9% up), and other companies to 375.9 mcm (8.5% up).

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