PJSC Ukrnafta has a strategic goal to ensure Ukraine’s energy independence in oil products by 2027 by doubling its oil and gas production, the Verkhovna Rada’s Committee on Energy and Housing and Utilities said Tuesday, citing the company’s director Serhiy Koretsky.
“Our company’s plan is ambitious enough, but there is a reason to announce it. Ukrnafta has every opportunity to be on the list of Ukrainian companies stabilizing the work of Ukraine’s financial and economic system,” he said during a visiting meeting of the Rada energy committee on the prospects of the Ukrainian oil refining industry in western Ukraine on June 1.
According to Koretsky, by 2027 the PJSC plans to increase oil production from almost 1.5 to 3 million tons per year. The company will achieve such indicators by drilling new wells and intensifying production, restoring production at idle wells, as well as by introducing methods to improve oil recovery at existing fields.
As Koretskyy noted, Ukrnafta started implementation of the plan to drill 9 wells in 2023 and at least 30 wells in 2024. At that, the company has been drilling 1-2 wells a year on average in recent years. “Ukrnafta also did not participate in auctions for new licenses.
“Analysis of the external environment shows that in the medium term, the company’s products will remain in demand and Ukrnafta will have the potential to develop on key markets. We believe that very soon the company will be talked about as the best employer, universal supplier of oil products and highly profitable national enterprise,” summarized the head of PJSC.
“In 2023, Ukrnafta plans to increase its oil production by 5.8% (by 0.08 million tons) to 1.45 million tons compared to the previous year, and gas production by 0.3% (by 0.003 million cubic meters) to 1.04 billion cubic meters.
On November 5, 2022, the Supreme Commander in Chief decided to confiscate Ukrnafta shares (except for the controlling interest in Naftohaz Ukrainy) as state property during the martial law. Prior to the seizure, the structures of Ihor Kolomoyskyy and Hennadiy Boholyubov owned about 42% of Ukrnafta shares.
As of the end of March 2023, Ukrnafta had 89 fields with 3.7 thousand oil and gas wells. The company operates 451 gas stations.
In January-March 2023, PJSC Ukrnafta carried out a number of organizational and technical measures at the wells, which made it possible to increase the average daily oil production by more than 100 tonnes and petroleum gas by 30,000 cubic meters.
This was reported in a company press release with reference to the post of director of PJSC Ukrnafta Serhiy Koretsky on his Facebook page on Friday.
“In particular, the transfer to another horizon of one well in the Eastern oil and gas region made it possible to obtain an average daily flow rate of 34.1 tonnes of oil. As of the end of March, 1,100 tonnes of oil and 100,000 cubic meters of petroleum gas have already been received from this well,” he said.
In addition, more than 10 complex operations were carried out at other fields.
“Thanks to these works, it was possible to increase the flow rate at some wells four times, which in total brought more than 100 additional tonnes of daily oil flow rate and about 30,000 cubic meters of petroleum gas,” the PJSC said.
As the company recalled, Ukrnafta aims to increase oil production by 6% in 2023, with a further subsequent increase in production over the next five years. This year it is planned to drill three new wells and three sidetracks.
OPEC+ ministers, in their uncertainty related to the prospects of the world economy and the oil market, due to the need to improve long-term forecasts of the oil market, as well as in accordance with the successful approach to renewal actions, which were consistently applied by the participating countries, adopted a number of decisions, the secretariat of the organization reported.
All is provided, the term of the agreement has been extended until December 31, 2023.
Since November, the oil production quota has been reduced by 2 million b/s compared to the August level (falling in line with the October quotas).
Ministries are responsible for registration with the Office+ Ministerial Monitoring Committee (JMMC) and one at a time. Full-length OPEC+ ministerial meetings will be held this year together with OPEC+ conferences
JMMC may at any time request to the OPEC+ Ministries, if necessary.
The next meeting of OPEC+ ministers is scheduled for December 4.
Refund period for late date March 31, 2023.
PJSC Ukrnafta in January-September 2021 reduced oil and condensate production by 1.1% (by 12,200 tonnes) compared to the same period in 2020, to 1.122 million tonnes, including in September production grew by 2.1% compared to September 2020, to 125,500 tonnes.
As the company told Interfax-Ukraine, gas production in the first nine months of 2021 fell by 3.4% (by 29 million cubic meters), to 832.8 million cubic meters, including in September it rose by 4.9%, to 94.6 million cubic meters.
Ukrnafta said that the average daily production has been growing since the beginning of the year, in particular, in September 2021 this figure for oil with condensate amounted to 4,180 tonnes, which is 4.8% more than in January 2021, for gas it was 3.15 million cubic meters, which is 7.3% more than in January 2021.
Ukrnafta is the largest oil company in the country. NJSC Naftogaz Ukrainy owns 50% + 1 share in Ukrnafta, a group of companies associated with the former shareholders of PrivatBank – about 42% of shares.
Ukrnafta has 85 licenses for the production of hydrocarbons, it has 1,809 oil and 153 gas wells on its balance sheet. The company owns 537 filling stations.
PJSC Ukrnafta in May 2019 increased oil and condensate production by 8.5% compared to May 2018, to 130,700 tonnes, the press service of the company has said.
Natural gas production increased by 10.4%, to 98.4 million cubic meters. Compared with April 2019, oil and condensate production increased by 3.9%, that of gas by 4.6%.
The average daily production last month amounted to 4,200 tonnes per day and 3.2 million cubic meters per day respectively.
In 2018, Ukrnafta posted UAH 6.628 billion of net profit against UAH 101.771 million of profit for 2017.
