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.
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.
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.
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).
One of the largest private gas production companies in Ukraine – private joint-stock company Ukrnaftoburinnia in January-March 2019 saw a 50% rise in gas production year-over-year, to 166 million cubic meters (mcm), and a 49% rise in oil and condensate production, to 21,000 tonnes, the company’s press service has reported.
“The growth of production indicators was linked to significant investment in exploratory drilling in 2018. The wells that were developed last year opened up a number of new deposits, the potential of which turned out to be somewhat higher than our expectations,” Head of the geology department Volodymyr Novikov said.
According to the results of 2018, Ukrnaftoburinnia increased natural gas production 38.1% compared to 2017, to 550.28 mcm.
Ukrnaftoburinnia is one of the largest private gas producing companies in Ukraine. Since 2010 it has been developing Sakhalynske oil and gas condensate field (Kharkiv region). The company operates 24 gas condensate, oil and gas wells. In the framework of agreements on joint activities it additionally operates ten gas condensate wells.
According to an information disclosure system of the National Commission for Securities and the Stock Market, the largest shareholders in the company are Deripon Commercial Ltd. (Cyprus) with 44.989%, companies Ares Systems Ltd. and Ariana Business Limited registered at the same address in London with 22.4996% and JKX Ukraine B.V. with 10%. MP Vitaliy Khomutynnik said in August 2016 that he owns Deripon Commercial Ltd. on parity basis with Ihor Kolomoisky.
Smart Energy Group plans to invest about UAH 1 billion in increasing natural gas production in 2019, director general of the group of companies Serhiy Hlazunov has said at a press conference in Kyiv.
“Investments are foreseen for drilling new wells – we have plans to drill four new wells this year. We also plan to overhaul both our wells and those of Ukrgazvydobuvannia located in our fields,” he said.
According to him, the company as a whole expects to overhaul five wells this year. Of the four wells planned for drilling, one could be put into operation before the end of 2019.
Commenting on gas production plans, he added that the company expects a 10% growth (about 30 million cubic meters), to 325.2 million cubic meters.
In 2018, the group of companies increased natural gas production by 31% compared with 2017, to 296.7 million cubic meters, gas condensate output by 40%, to 25,700 tonnes, that of liquefied gas by 49%, to 6,900 tonnes.
