Oil transit through the territory of Ukraine to European countries in 2018 decreased by 4.3% (602,400 tonnes) compared with 2017, to 13.335 million tonnes, according to Ukrtransnafta. According to Interfax-Ukraine calculations, the volume of oil pumping to the refineries of the country in 2018 increased by 0.2% (4,500 tonnes), to 2.101 million tonnes.
Thus, last year the share of transit in the total volume of oil transportation (15.436 million tonnes) amounted to 86.4%, the share of pumping to the country’s refineries was 13.6%.
PJSC Ukrnafta in January-November 2018 increased production of oil and gas condensate by 5.1% or 65,000 tonnes year-over-year, to 1.324 million tonnes, the company’s press service has reported.
Over the period average daily oil production was 4,000 tonnes (5.1% more than a year ago).
The company recalled that positive dynamics was observed thanks to the resumption of operation at wells at six fields, which Ukrnafta was forced to stop in the second half of 2017, as well as thanks to measures aimed at intensifying production at the existing well stock.
According to the company, gas production in January-November 2018 decreased by 3.1% (by 32 million cubic meters), to 986 million cubic meters, and the production of liquefied gas – by 5.7% (6,000 tonnes), to 100,000 tonnes.
In general, in January-November 2018, Ukrnafta carried out 14 hydraulic fractures, completed the overhaul of 97 wells, and carried out 80 operations to intensify production.
“Thanks to the overhaul, as of the end of November, an additional 51,600 tonnes of oil and condensate were produced, as well as 68.1 million cubic meters of gas. Intensification of operations added 24,100 tonnes of oil and 7.1 million cubic meters of gas,” the company said.
Ukrnafta predicts to increase in annual oil and condensate production by 5% by the end of 2018 compared to the planned figure (1.38 million tonnes), to 1.45 million tonnes. Gas production could grow by 11%, to 1.08 billion cubic meters (the target is 0.97 billion cubic meters, production in 2017 amounted to 1.11 billion cubic meters).
Ukrnafta is the largest oil producing company in the country.
Naftogaz Ukrainy owns 50% plus one share in Ukrnafta and companies associated with the former shareholders in PrivatBank own about 42%.
Kernel, one of the largest Ukrainian agricultural groups, plans to launch an oil processing plant in Starokostiantyniv district of Khmelnytsky region in early 2021, according to the annual report of Kernel Holding S.A. (Luxembourg). “The plant for processing oilseeds is located in the middle of western Ukraine, in the area with high sunflower yields and production,” chairman of the board of directors Andriy Verevsky said.
According to him, the capacity of the processing plant will be one million tonnes of grain per year, the volume of oil storage facilities is 100,000 tonnes. Commissioning is scheduled for early 2021. The construction of a combined heat and power plant with a capacity of 22 MW running on sunflower husk is also envisaged.
According to Verevsky, the company plans by the end of 2020 to install similar heat and power plants at all its plants, their total capacity will be 72 MW.
In addition, Kernel plans in 2019 to put into operation the second grain terminal of the company in Chornomorsk.
The launch of the first phase of the second terminal TransGrainTerminal with a capacity of one million tonnes per year is scheduled for January 2019. The entire terminal will be completed by the end of 2019, its capacity will be 4 million tonnes of grain per year.
Cadogan Petroleum, the British oil and gas company with assets in Ukraine, has commenced drilling the shallow Vovche-2 well on the Bitlianska license (Lviv region), the company has reported on the website of the London Stock Exchange (LSE).
Cadogan said that the well is anticipated to take 20 days to drill and will then be put on production if successful. The well is designed to test the potential of satellite prospects around an established, old oil field.
A heavier rig is being selected to drill the Blazh-10 well on the Monastyretska license (Lviv region) as planned at a depth of about 3,500 meters. The well is expected to spud in November and is anticipated to take three months to drill, the company said.
The Vovche-2 well and the Blazh-10 well fulfil the company’s remaining commitments on the Bitlianska and Monastyretska exploration licenses, a prerequisite to convert them into production licenses.
Crude oil production in Ukraine in January-August 2018 grew by 2.7% year-over-year, to 1.004 million tonnes. The Energy and Coal Industry Ministry of Ukraine told Interfax-Ukraine that gas condensate production grew by 0.8%, to 441,936 tonnes.
Naftogaz Ukrainy’s enterprises increased oil production by 2.9% in January-August 2018, to 976,820 tonnes, but decreased gas condensate output by 7.1%, to 278,330 tonnes. A 2.9% rise was seen in oil production by Ukrnafta, to 926,300 tonnes and a 16.1% fall in production of gas condensate, to 33,400 tonnes, while Ukrgazvydobuvannia cut oil production by 9%, to 50,520 tonnes and gas condensate by 5.7%, to 244,930 tonnes.
Other oil producing companies in January-August 2018 increased crude oil production by 26.3%, to 26,684 tonnes and condensate – by 17.7%, to 163,606 tonnes.
As reported, in 2017, Ukraine cut oil and gas condensate production by 4.2%, to 2.098 million tonnes.
IBM Ukraine LLC, which is wholly owned by IBM Central and Eastern Europe, has won a tender called by NJSC Naftogaz Ukrainy to have its strategy for information technology developed. IBM Ukraine, with a bid of UAH 3.748 million (VAT included), defeated other bidders, namely Ernst & Young (E&Y) and PwC Polska, Naftogaz announced in the ProZorro e-procurement system. The services must be provided by December 31, 2018.
The goal is to determine the level of IT maturity and ensure maximum efficiency from investments in IT. As a result, the target operating model of the company’s IT and the development roadmap should be developed, including a portfolio of projects, the necessary resources and portfolio management processes.
The IT analysis should be carried out for Naftogaz and its subsidiaries, namely Ukrtransgaz, Ukrgazvydobuvannya, Ukrtransnafta, Ukrspetstransgaz, Chornomornaftogaz, and Ukravtogaz.
Naftogaz Ukrainy unites the largest oil and gas producing enterprises of the country. It is a monopolist in transit and storage of natural gas in underground storage facilities, as well as transportation of crude oil by pipelines throughout the country.
GAS, IBM, INFORMATION TECHNOLOGY, OIL, PRODUCING COMPANY, TENDER
