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
Ukraine decreased imports of crude oil (foreign trade code 2709) by 3.3% or 14,071 tonnes in January-June 2018 year-over-year, to 416,520 tonnes.
The State Fiscal Service reported that oil for $227.374 million was imported, which is 24.4% more than in January-June 2017 ($182.777 million).
Ukraine in January-June 2018 imported crude oil for $214.112 million from Azerbaijan, $7.176 million from Algeria, $4.018 million from Iran and $2.067 million from other countries.
The country did not export crude oil in January-June. As reported, Ukraine in 2011 imported 5.826 million tonnes of oil for $4.384 billion, in 2012 – 1.544 million tonnes for $1.233 billion, in 2013 – 761,058 tonnes for $630.282 million, in 2014 – 178,613 tonnes for $146.533 million, in 2015 – 248,158 tonnes for $89.039 million, in 2016 – 515,954 tonnes for $173.835 million, in 2017 – 1.013 million tonnes of oil for $442.219 million.
Ukraine and Azerbaijan at a meeting of the bilateral working group for energy issues on June 14 in Baku discussed delivery of oil from Azerbaijan to Ukrainian and European oil refineries, the press service of Ukraine’s Energy and Coal Industry Ministry has reported. “The sides discussed the state of the implementation of a project to supply various types of oil to Ukrainian oil refineries and to the countries of the Central and Eastern Europe,” the ministry said.
The involvement of Ukraine to the implementation of the Southern Gas Corridor project was also discussed.
As reported, Ukraine increased imports of crude oil (foreign trade code 2709) by 36.8% or 102,260 tonnes in January-May 2018 year-over-year, to 380,196 tonnes.
The State Fiscal Service reported that oil for $205.489 million was imported, which is 66.8% more than in January-May 2017 ($123.194 million).
Ukraine in January-May 2018 imported crude oil for $194.853 million from Azerbaijan, $7.176 million from Algeria, $1.844 million from Iran and $1.616 million from other countries.
Ukrainian President Petro Poroshenko has signed a bill deregulating the license issue in the oil and gas production sphere.
According to a posting on the website of the Verkhovna Rada, the signed document was returned to the parliament on March 29.
The law permits the use of the servitude tool for the construction of oil and gas production facilities and pipelines (without changing the purpose of land use).
In addition, the need to obtain a patented mining claim is eliminated. Oil and gas production facilities are removed from the list of facilities of town-planning activity. The obligatory introduction of deposits to research, industrial and commercial development is canceled by the decision of the Ministry of Energy and Coal Industry.
The document gives the right to oil and gas producers after the completion of the period of research and industrial development of deposits to use land parcels on the basis of an agreement with the owner of the land parcels until the purpose of land use is changed and documents for the right to use land are registered (now companies are obliged to stop production for the period of processing documents).
The removal and transfer of soil for further drilling can be carried out without special permission on the basis of a detailed land management project.
The law grants deposit users the right to use their geological information without agreeing them with authorities. In addition, it is proposed to expand the range of entities that can conduct a geological and economic assessment of oil and gas reserves (now this right is owned exclusively by the State Commission of Ukraine for Mineral Reserves).
As reported, the Verkhovna Rada adopted on March 1 at the second reading and in general bill No. 3096-d, which deregulates the license issue in the oil and gas production sphere.
