JSC “Ukrgazvydobuvannya,” part of the “Naftogaz” group, contributed UAH 5.4 billion in royalty payments to the country’s consolidated budget based on its operations in January–March 2026, the company reported on Tuesday.
“In accordance with current legislation, 5% of this amount, or 270.5 million UAH, was allocated to local and regional budgets in the regions where the company conducts hydrocarbon production,” the company noted.
The royalty funds are distributed among the regions as follows: Kharkiv – 150 million UAH, Poltava – 96.6 million UAH, Lviv – 13.3 million UAH, Dnipropetrovsk – 3.4 million UAH, others – 7.2 million UAH.
As reported, in 2025, the state-owned company “Ukrgazvydobuvannya,” the largest player in the market in terms of gas production volume, incurred a loss of 5.5 billion UAH, compared to a profit of 52.6 billion UAH in 2024.
On April 20, PJSC Ukrgazvydobuvannya (Kyiv) announced its intention to enter into an agreement with Guardian Insurance Company for risk insurance services related to the commercial development of oil and gas fields. According to the Prozorro electronic public procurement system, the expected cost of the services was 548,800 UAH, and the company’s bid was 501,499 UAH.
The insurance company “VUSO” also participated in the tender with a bid that was 1 hryvnia higher.
GAS, Guardian, INSURANCE, INSURANCE COMPANY, OIL, RISK, UKRGAZVYDOBUVANNYA
JSC “Ukrnafta” and JSC “Ukrgazvydobuvannya” have jointly completed the drilling of a gas well at one of Ukrnafta’s fields.
The project, implemented as part of the cooperation between the two Naftogaz Group companies, marked the first practical step in developing internal cooperation to increase natural gas production in Ukraine.
As part of the project:
• JSC “Ukrgazvydobuvannya” provided drilling services using its own drilling rig;
• JSC “Ukrnafta” is responsible for the further development and operation of the facility.
The actual depth of the well is 5,681 meters.
“Increasing our own gas production is one of our key priorities. Synergy within the Naftogaz Group allows us to use resources more efficiently and accelerate project implementation,” said Serhiy Koretskyi, Head of the Naftogaz Group.
“This is the first joint project between Ukrnafta and Ukrgazvydobuvannya. We have developed a model of cooperation between the companies and achieved a practical result that provides a foundation for scaling up such cooperation in the future,” said Bohdan Kukura, Chairman of the Board of JSC Ukrnafta.
“Ukrgazvydobuvannya’s provision of services for the efficient use of the drilling rig fleet to increase hydrocarbon production for the state is a strategically important area of development. It strengthens Ukraine’s energy security and establishes a new model of successful cooperation within the Naftogaz Group,” emphasized Yuriy Tkachuk, CEO of JSC “Ukrgazvydobuvannya.”
The well development phase is currently underway. The drilling rig will be used to drill subsequent wells at Ukrnafta’s fields.
JSC “Ukrnafta” is Ukraine’s largest oil production company and operates the country’s largest national network of gas stations—UKRNAFTA. In 2024, the company entered into an asset management agreement with Glusco. In 2025, it finalized a deal with Shell Overseas Investments BV to purchase the Shell network in Ukraine. In total, it operates nearly 700 gas stations.
The company is implementing a comprehensive program to resume operations and modernize the format of gas stations in its network. Since February 2023, it has been issuing its own fuel vouchers and “NAFTACard” cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
The largest shareholder of Ukrnafta is Naftogaz of Ukraine with a stake of 50% plus one share.
In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state the share of corporate rights in the company that belonged to private owners, which is now managed by the Ministry of Defense.
PJSC Ukrgazvydobuvannya (Kyiv) has announced its intention to conclude a contract with Guardian Insurance Company for compulsory civil liability insurance for owners of land vehicles (OSAGO). According to the Prozorro electronic public procurement system, the expected cost of the services was UAH 3.131 million, and the company’s price offer was UAH 2.868 million.
Insurance company Kraina also participated in the tender with an offer of UAH 2.946 million.
Guardian Insurance Company was also the winner of a similar tender a year earlier.
Ukrgazvydobuvannya, part of the Naftogaz group, has commissioned a new high-yield exploration well with a flow rate of 383,000 cubic meters of natural gas per day.
This was reported in a press release of the group with reference to the chairman of the board of Naftogaz of Ukraine, Serhiy Koretsky.
“This result is a joint achievement of all divisions of Ukrgazvydobuvannya that were involved in the design, drilling, and development.
I would like to thank everyone who worked on this well. Step by step, we are strengthening our own production,” he said.
The well is inclined, with a depth of almost 5.7 km. All work, from drilling to commissioning, was completed a month and a half ahead of schedule.
According to Naftogaz, two more exploration wells are currently being drilled at the same field, and three more are planned to start drilling in the near future.
As reported, Ukrgazvydobuvannya set a new drilling record in January-March 2025, reaching 107,136 meters, which is almost twice as much as in the same period of 2024 and exceeds the previous quarterly maximum recorded in the third quarter of 2024 (102,866 meters).
Ukrgazvydobuvannya, part of the Naftogaz Group, plans to conduct 3D seismic surveys covering an area of 230 square kilometers in western Ukraine, according to Serhiy Koretsky, chairman of the board of Naftogaz Ukraine.
Serhiy Koretsky.
“We are starting a new phase of 3D seismic surveys in western Ukraine. We plan that this year Ukrgazvydobuvannya will cover 230 square kilometers,” Koretsky wrote on Facebook on Friday.
According to him, this region has not been in focus for a long time due to depleted reserves – compared to the eastern part of Ukraine, it was considered less promising. However, as Koretsky noted, modern seismic exploration opens up new opportunities: it allows for more accurate detection of gas where it was previously impossible.
“We expect that the results of new research will allow us to start drilling new wells as early as 2026-2027,” the head of Naftogaz shared his plans.
The Naftogaz press release states that between 2019 and 2023, the company has already processed approximately 1,600 square kilometers of 3D seismic data in the western region, which has allowed for the drilling of more than 10 new wells. Four of them yielded initial production rates of 80 to 270 thousand cubic meters of gas per day. These figures were described as significant for the region, where gas production began in 1912.
Over the past five years, Ukrgazvydobuvannya has increased reserves in the region by 2.4 billion cubic meters, according to the release.
