Business news from Ukraine

CHP modernization is one of key priorities for 2024 – Naftogaz

The modernization of CHP plants is one of the key priorities for 2024, which the management of Naftogaz Group discussed with the company’s Supervisory Board at an offsite meeting on March 20, 2024.

“The thermal generation facilities transferred to Naftogaz are in an extremely poor condition. They have not been modernized for years, and the war has also had a negative impact on their operation. In today’s environment, they cannot operate efficiently and ensure the proper level of reliability. Therefore, we need to find funds to modernize these facilities,” the Naftogaz Group website said on Thursday, citing its head Oleksiy Chernyshev.

Among the key priorities of the group this year, Naftogaz also highlighted the growth of gas and oil production, an increase in the volume of gas from foreign energy companies in Ukrainian underground storage facilities, the development of customer services for household consumers and the protection of facilities in times of war.

In particular, the group plans to increase natural gas production by 0.5 bcm this year and attract about 4 bcm of gas from foreign traders for storage in Ukrainian underground storage facilities, up from 2.5 bcm in 2023.

“As in the previous year, our top priority remains to increase our own Ukrainian gas and oil production. Our plan for 2024 is to increase natural gas production by at least half a billion cubic meters. We are increasing the pace of drilling new wells, using modern technologies for both subsoil exploration and direct gas production,” Chernyshov said.

As reported with reference to the head of Naftogaz, the group plans to produce 15 billion cubic meters of natural gas in 2024 at the expense of PJSC Ukrgasvydobuvannya (UGV) and PJSC Ukrnafta.

According to Chernyshev, in 2023, UGV produced 13.5 billion cubic meters of gas.

For his part, according to UGV CEO Oleh Tolmachov, in 2023, the company increased gas production by about 700 million cubic meters compared to 2022. In 2022, the company produced 12.5 billion cubic meters of natural gas (commercial).

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

The Cabinet of Ministers of Ukraine decided to transfer six CHPPs from the State Property Fund to Naftogaz of Ukraine (Dniprovska in Kamianske, Mykolaivska, Kryvorizka, Khersonska, Odesa, and Centralized Metallurgical Plant of Sievierodonetska CHPP) in early August 2021. Later, the government decided to increase the authorized capital of the NJSC by UAH 646.248 million through an additional share issue by contributing additional stakes in these CHP plants.

, , ,

“Naftogaz” paid UAH 5.3 bln in taxes in February

Last month, Naftogaz Group companies paid UAH 5.3 billion in taxes, which is 17.8% more than in February 2023.

According to a report on Naftogaz’s website, the company paid UAH 4.8 billion to the state budget and UAH 0.5 billion to local budgets.

In total, since the beginning of 2024, the group has paid UAH 11.4 billion in taxes to the state.

As reported, in 2023, Naftogaz Group companies paid UAH 90.2 billion in taxes, UAH 83.4 billion of which went to the state budget and UAH 6.8 billion to local budgets.

,

“Naftogaz” increased gas production from workover wells by 20%

In 2023, Naftogaz Group increased production from workover wells by 20% compared to pre-war 2021, which was a record high for the last four years.

“This figure is 20% higher than production in pre-war 2021. I am sincerely grateful to the specialists of Ukrgazvydobuvannya and the entire team that made this result possible,” the group said on its website, citing Naftogaz CEO Oleksiy Chernyshev on Thursday.

Recently, Ukrgasvydobuvannya JSC (UGV), a part of the Naftogaz group, has overhauled and restored an old well, which now additionally produces more than 340 thousand cubic meters of gas per day.

This well had been awaiting abandonment for a long time, but in 2023, experts conducted a detailed analysis, reviewed technical and geological risks, and decided to restore the well through workovers.

“Our experts are constantly working on reviewing and analyzing old wells that can be brought back into operation due to better technical capabilities than decades ago,” commented Oleh Tolmachov, Acting CEO of Ukrgasvydobuvannya.

As reported, in 2022, Ukrgasvydobuvannya produced 12.5 bcm of natural gas (commercial), which is 3% less than in 2021. According to operational data, the company increased production by more than 0.7 bcm in 2023.

NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.

,

“Naftogaz” paid UAH 6.1 bln in taxes in January

In January 2024, Naftogaz Group companies paid UAH 5.6 billion in taxes to the state budget of Ukraine.

“8.5% of all tax revenues to the state budget of Ukraine in January 2024 are taxes paid by Naftogaz Group. We are talking about the amount of UAH 5.6 billion,” the group said on its website on Tuesday.

Another UAH 0.5 billion was transferred to local budgets.

“Naftogaz Group remains one of the largest taxpayers in Ukraine and a reliable support for the state budget. In total, over 31 days of January 2024, we have already paid UAH 6.1 billion in taxes to the country’s consolidated budget,” the group’s CEO Oleksiy Chernyshev said as quoted on the website.

As reported, in 2023, Naftogaz Group companies paid UAH 90.2 billion in taxes, UAH 83.4 billion of which went to the state budget and UAH 6.8 billion to local budgets.

,

“Naftogaz” paid over UAH 90 bln in taxes

Naftogaz Group companies paid UAH 90.2 billion in taxes in 2023.

“Last year, our group of companies transferred: UAH 83.4 billion to the state budget, UAH 6.8 billion to local budgets,” Naftogaz said on its Telegram channel on Monday.

It is specified that, in particular, in December 2023, the group’s companies transferred UAH 6 billion to the state budget and UAH 0.5 billion to local budgets.

“The energy security of our country is one of the key tasks of the Naftogaz Group. However, contributing to Ukraine’s economic development is equally important. We continue to be one of the largest taxpayers for the state,” Naftogaz CEO Oleksiy Chernyshov said as quoted on the company’s website.

At present, Gas Supply Company Naftogaz of Ukraine LLC continues to supply gas to 12.3 million consumers. It has signed 1,242 contracts with 449 district heating companies and 793 condominiums.

In addition, it is noted that 7 CHP plants managed by the group continue to provide heat to thousands of Ukrainians in Kamianske, Kryvyi Rih, Novoyavorivsk, Novyi Rozdil, Mykolaiv, Odesa and Kherson.

“Gas reserves in Ukrainian storage facilities are sufficient for the successful completion of the heating season,” Naftogaz said.

,

Launch of three wells increased gas production by 0.4 mln cubic meters – Naftogaz

Naftogaz Group has increased gas production by more than 400 thousand cubic meters by launching three wells in November, its CEO Oleksiy Chernyshov said.

“We continue to increase Ukrainian gas production! In November alone, three high-rate wells were put into operation (…). In total, in November we have an additional 400 thousand cubic meters of gas per day!” he wrote on his Facebook page on Friday.

Chernyshov clarified that two of the mentioned wells are new. Their launch was the result of the implementation of the largest 3D seismic survey program in the history of modern Ukraine and the high professionalism of Naftogaz specialists. The third well is a rehabilitated well that had been in the liquidation fund for 35 years.

As reported, in 2023, Ukrgasvydobuvannya set a goal to increase natural gas production by 1 billion cubic meters to 13.5 billion cubic meters. In 2022, the company produced 12.5 bcm of natural gas (commercial), which is 3% less than in 2021.

NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.

,