Business news from Ukraine

Business news from Ukraine

Ukrgasvydobuvannya increased gas production by 0.5 mln cubic meters per day

Ukrgasvydobuvannya JSC has launched five more wells with a daily increase in production of 0.5 million cubic meters of natural gas, the company’s press service reports.

According to the press service, four of the five wells were drilled in “old” fields 45-55 years old. One more is a new field: gas from it first entered the Ukrainian gas transportation system this month.

“To achieve our production growth targets, we combine the use of modern technologies to discover new deposits at already depleted fields and increase investments in research and development of new areas,” said Oleg Tolmachev, Head of UGV.

This approach at one of the old fields has increased daily gas production by 35% over the past two years, and at another by almost 50%.

“The rest of the fields, thanks to the use of modern technologies, have received a new life – they demonstrate stabilization of indicators and the possibility of potential production growth,” the company said.

As reported, since the beginning of the year, UGV has commissioned 58 new gas wells with a total average daily production rate of 5.3 million cubic meters.

The company aims to increase natural gas production by 1 bcm in 2023 to 13.5 bcm. In 2022, UGV produced 12.5 bcm of natural gas (commercial), which is 3% less than in 2021.

NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.

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Gas prices for households will not change until end of winter – Naftogaz CEO

Ukraine is entering the autumn-winter season with a sufficient amount of gas in underground storage facilities, while maintaining a stable pricing policy, said Oleksiy Chernyshov, CEO of Naftogaz of Ukraine, during the United News telethon.
“Gas prices for households and district heating companies remain stable. They will not change until the end of winter. Therefore, I have to reassure the population in this regard, as well as cities and district heating companies,” he emphasized.
The Head of Naftogaz Group also noted that the preparations for the heating season were at the proper level.
“We have to move forward, get through this winter and be absolutely confident of victory and further actions,” Chernyshov said.
Earlier on Tuesday, Energy Minister Herman Halushchenko said that electricity prices for household consumers would remain stable until the end of this heating season.
“As for resources, we will be provided with everything we need, both coal and gas. Due to high temperatures in the last two months of summer, coal stocks in warehouses have fallen slightly, but we have already signed relevant contracts, including imports, and we will be fully provided with coal in the required volume,” the minister said.
According to him, almost 15 billion cubic meters of gas have been accumulated in storage facilities so far, which is even more than planned for the beginning of the heating season.

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“Ukrnafta” increased production of oil with condensate by 4.5%, gas – by 6.8%

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.

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Ukrhazvydobuvannya has discovered new gas field with 1 bln cubic meters of reserves

Ukrhazvydobuvannya JSC (UGV) has discovered a new gas field with reserves that may reach 1 billion cubic meters.

“The received geological information indicates that the reserves of the new field may reach 1 billion cubic meters of gas,” Naftogaz Ukrainy said in a press release on Tuesday.

UGV tested a drilling well with a depth of almost 4,000 meters “from scratch” and completed the work in August this year, before drilling the company’s specialists conducted a 3D seismic survey.

“This is not the first discovery of new hydrocarbon deposits this year. By building up reserves, we are creating a prospect for sustainable growth in gas production,” the press release quoted Ukrgasvydobuvannya’s acting general director Oleg Tolmachev as saying.

According to him, UGV will continue the geological exploration program at this field and plans to drill new wells.

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

Naftohaz Ukrayiny owns 100 percent of Ukrhazvydobuvannya.

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Ukrainian gas storage facilities are already 80 percent full – Shmygal

Natural gas reserves in Ukrainian underground gas storages (UGS) have reached 11.7 billion cubic meters of gas, and 1.5 million tons of coal are in the warehouses of power plants, Prime Minister Denis Shmygal said.

“We are also preparing the heat and power sector for winter. Repairs of cogeneration plants, boiler houses, thermal power plants are going on as planned. 11.7 billion cubic meters of gas has already been pumped into Ukrainian gas reservoirs. This is almost 80% of the demand. We have 1.5 million tons of coal in stock, we plan to reach the figure of 1.8 million tons,” Shmygal said at a meeting of the Ukrainian government on Tuesday.

The head of the government called on the Ministry of Recovery, the Ministry of Energy, Ukrenergo and Naftogaz Ukrainy “to maximum concentration of efforts and mobilization of resources.”

As reported, Ukraine has 12 UGS facilities with a total design capacity of 31 billion cubic meters. The country plans to enter the 2023/24 heating season with 14.7bn cu.m. of reserves.

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Ukraine accumulates 11.7 bcm of gas in storage facilities

During the preparation for the heating season, Ukraine’s gas storage facilities have already accumulated 11.7 billion cubic meters of gas, and by the beginning of the autumn-winter period, it is planned to reach the figure of 14.7 billion cubic meters, Prime Minister of Ukraine Denys Shmyhal has said.

The Department of Communications of the Secretariat of the Cabinet of Ministers said on July 21 that he said this after a meeting with Deputy Prime Minister for Reconstruction, Minister for Communities, Territories and Infrastructure Development Oleksandr Kubrakov, Head of NJSC Naftogaz Oleksiy Chernyshev, representatives of the Ministry of Infrastructure, the Ministry of Energy, the Ministry of Economy and the Ministry of Finance.

At the meeting, issues of repairs, accumulation of fuel resources, and safety of thermal power facilities were discussed. Reports were heard from the Ministry of Infrastructure and NJSC Naftogaz on the plan for the preparation of thermal power plants for the autumn-winter period 2023/2024 and on the state of implementation of this plan for CHPPs, boiler houses, and thermal power plants.

“As the Ministry of Infrastructure reported, each enterprise has its own equipment repair plan, they are being implemented under the schedules. Those responsible for their observance have been identified. The state of readiness of housing and municipal services facilities has been considered. At the start of the heating season, they should reach 100%. This guarantees a stable winter,” Shmyhal said.

The prime minister also announced an instruction to ensure the protection of thermal power infrastructure facilities from enemy shelling. “Tasks have been set. Responsible persons have been identified. We are working to ensure that it is warm in the homes of Ukrainians,” the head of the Ukrainian government said.

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