PJSC Ukrnafta has started implementing the standards of The American Petroleum Institute in its operations, the company said in a press release on Thursday.
“Until 2023, the company was guided by outdated, Soviet-era standards of work. Accordingly, this affected absolutely all business and technological processes and did not allow us to develop at the desired pace. This is now changing,” the document explains.
In particular, the company signed a memorandum with The American Petroleum Institute and started purchasing modern equipment for production, service and stimulation – this year alone, modern pumps from German Oil Dynamics, American Baker Hughes and Alkhorayef Petroleum from Saudi Arabia will be installed in 150 wells of the company.
“However, the most important thing, the basis of all processes, is the implementation of standards, because these are the rules and regulations that the industry operates under throughout the civilized world. The first important step in this direction has already been taken: an agreement has been signed with The American Petroleum Institute to obtain and translate industry standards,” the company said.
Initially, 314 API standards have been identified, 20 of which relate to drilling, exploration, production and stimulation, and their translation has already been received and started.
The American Petroleum Institute has been defining and maintaining standards for the global oil and gas industry since 1924. These are work rules based on a century of experience and modern trends that improve safety, reduce costs, reduce waste and ensure the quality of the final product,” the company explained.
Ukrnafta added that these will be the first API standards available in Ukrainian.
“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of filling stations. In March 2024, the company took over the management of Glusco’s assets and operates a total of 545 filling stations – 460 owned and 85 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company, which belonged to private owners and is currently managed by the Ministry of Defense.
The cooperation between HC Tryzub and Ukrnafta will be aimed at developing hockey in Ukraine and will help attract young people to the sport. The partnership will enable the club not only to strengthen its position in Ukrainian hockey, but also to reach a new level of development. Financial stability and support from one of the country’s largest enterprises will allow HC Tryzub to implement its ambitious plans and reach new heights.
Yevhenii Zyk, General Manager of HC Tryzub, said:
“We are very pleased to start cooperation with Ukrnafta. This partnership opens up new opportunities for our club and, first of all, contributes to the popularization of hockey in Ukraine. We are grateful to our new partners for their support and trust in our project.”
“In its statement, Ukrnafta emphasized the importance of supporting sports initiatives aimed at developing youth and promoting a healthy lifestyle. “We are proud to become a partner of HC Tryzub. Sport plays an important role in the life of our country, as it not only promotes a healthy lifestyle, but also fosters team spirit and resilience. By supporting youth hockey, we are investing in the future of Ukraine, because these young men and women will become the leaders of our country tomorrow,” said Maksym Miklashevskyi, Director of Marketing at PJSC Ukrnafta.
This partnership promises to be long-lasting and mutually beneficial, contributing not only to the success of HC Tryzub on the ice, but also to the overall development of hockey in Ukraine.
Tryzub Hockey Club and Ukrnafta invite all fans to support the team in the new season!
PJSC Ukrnafta has received applications from six companies for joint development of 15 fields out of 21 offered for investment in 2023, said Denys Kudin, Executive Vice President for Corporate Strategy and Development.
“We have received applications from 6 companies for 15 fields. No one applied for 6 fields, for some fields only one application was received, for others there were two applications, so we have to hold a certain internal competition,” he said during a speech at the IV Energy Law Conference in Kyiv on Friday.
According to him, the largest offer for investment in one field is $100 million, and the smallest is $7 million. Regarding the latter, he clarified that it was the best offer for the smallest field.
“As of this moment, the process (of attracting investors to joint field development – EP) is ongoing. We have passed the stage of accepting and evaluating proposals, finalized the commercial terms as seen by potential investors. The next step is the approval of these terms by our Supervisory Board, review by the interdepartmental commission under the Ministry of Energy, and then approval by the Cabinet of Ministers. This is the process, and we hope to complete it by the end of the calendar year,” said Kudin.
He said that Ukrnafta has proactively approached about 200 companies in the process of looking for investors and has also held talks with a number of companies at industry conferences. Out of this number of potential investors, more than 50 responded, and of these, 35 companies passed the due diligence process and were admitted to the Virtual Data Room with detailed information about the fields.
Kudin added that “the companies submitted proposals on average 1.5 times better than we had developed on our own, having formed their own vision of this five-year initial program.”
Describing the process of finding investors, Kudin noted that the company ranked them by country – in Canada, America, the UK, and the EU – and applied proactively, as well as advertising in the media, on the website, and at all possible industry events.
Regarding the selection of 21 fields, the company’s vice president noted that according to the criteria of the law on production sharing agreements (PSAs), “these are the worst, most difficult to produce, most depleted fields (out of 89 fields of Ukrnafta – EP) that require the use of high-cost, state-of-the-art technologies.” To assess them, 80 years of data were digitized.
Kudin pointed out that despite the war, foreign companies are ready to work in Ukraine and, in particular, to engage in production.
“We are not talking about top public companies where supervisory boards make decisions. For the most part, these are medium-sized private companies with a specific family of owners who continue to manage their business and risk their own money. They are ready to invest $50-60-100 million,” he said, adding that investors are encouraged by the possibility of resolving disputes under English law when concluding PSAs.
In general, he believes that about $10-15 billion should be invested in oil production over the next 10 years to reach annual production of 10 million tons, which would ensure Ukraine’s energy independence in this area.
As reported, at the end of 2023, Ukrnafta informed that 25 companies, including Ukrainian and companies from seven countries in Europe and North America, have already expressed interest in cooperation in the tender for the joint development of 21 fields (applications were accepted until March 1, 2024).
According to the company, the 2P category reserves, i.e. proven and probable reserves of the fields to which Ukrnafta offers access to potential partners, amount to over 12 million tons of oil and over 31 billion cubic meters of gas.
“In 2023, Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022, to 1.4 million tons. Last year, Ukrnafta produced 1.097 bcm of natural and associated petroleum gas, which is 5.8% (60.4 mcm) more than in 2022.
“Ukrnafta is the largest oil producer in Ukraine and the operator of the national network of filling stations. In March 2024, the company took over the management of Glusco assets and operates 545 filling stations – 460 owned and 85 managed. The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC. Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company, which belonged to private owners and is currently managed by the Ministry of Defense.
PJSC Ukrnafta has started drilling a new exploration well in western Ukraine, the company’s director Sergiy Koretsky said on Facebook on Friday.
“The design depth is 2754 meters. It is planned that the new well will reveal productive layers of menilite deposits,” he wrote.
The company is performing the work with its own rig, the Ukrnafta Drilling business unit.
The initial production rate is expected to be 16 tons per day.
As the head of the company reminded, Ukrnafta is also preparing to build two oil wells in the east of the country, which will produce more than 100 tons of oil per day. Both have design depths of about 4.5 km.
As reported, in 2023, Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022 – up to 1 million 409.9 thousand tons, gas production by 5.8% (by 60.4 million cubic meters), up to 1 billion 97.4 million cubic meters.
The company’s strategic goal is to double oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively.
“Ukrnafta is the largest oil producer in Ukraine and the operator of the national network of filling stations. In March 2024, the company started managing Glusco’s assets and operates a total of 545 filling stations – 460 owned and 85 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company, which belonged to private owners and is currently managed by the Ministry of Defense.
PJSC “Ukrnafta” (Kiev) on June 25 announced a tender for liability insurance services for holders of a special permit for the use of oil and gas bearing subsoil in the development of oil and gas bearing subsoil in cases provided for by the law “On Oil and Gas”, reported in the system of electronic public procurement Prozorro.
The expected cost of the purchase of services is UAH 943,160 thousand.
According to the system, the last day for submission of tender offers is July 3.
According to the Opendatabot Index, the leading companies in the extractive industry earned more than UAH 365 billion last year. Their total revenue grew by 13% compared to the first year of full-scale operations. More than half of the total revenue of the top companies is accounted for by 2 state-owned companies. Another 6 companies belong to Rinat Akhmetov’s SCM Group.
UAH 365.26 billion was the total revenue of the mining industry leaders in 2023, according to according to the Opendatabot Index. This is even 11% more than before the start of the full-scale war.
This year’s Index is led by state-owned Ukrnafta, which increased its revenue by 2.3 times in 2023 to UAH 95.17 billion. This is 26% of the total revenue of the top 10 extractive industries. In addition, Ukrnafta also made the largest profit among the top 10 companies: UAH 25.74 billion.
Last year’s leader, Ukrgasvydobuvannya, moved to second place. Despite the fact that the company managed to increase its revenue by 9%, its net profit decreased 19 times to UAH 3.14 billion in 2023. Ukrgasvydobuvannya’s main activity is natural gas production.
In total, these two state-owned companies earned half of the total income of the leaders of the extractive industry: UAH 189 billion.
Another 41% of the leaders’ revenue was shared by six companies of Rinat Akhmetov’s SCM Group: UAH 149.67 billion. Five of them made a net profit of UAH 32.35 billion. Only Central GOK suffered a loss of UAH 1.33 billion.
Among the SCM Group companies that increased their revenues in 2023 are Northern GOK (+44%), Svyato-Varvarinskaya Concentrator (+32%) and Pokrovskoye Mining Group (+14%). At the same time, revenues of Naftogazvydobuvannya and Central GOK decreased by 35% and 31%, respectively, and DTEK Pavlohradvuhillya decreased by 6%.
The Index also includes two companies, FERREXPO AG, associated with Konstantin Zhevago. Their total revenue for 2023 decreased by almost a third compared to 2022: Poltava Mining by 33% and Yeristovo Mining by 32%. However, these two companies managed to generate a combined profit of UAH 970.7 million.
In total, nine out of ten companies included in the Index managed to make a profit last year, amounting to UAH 62.11 billion. For comparison, in 2022, only 6 out of ten companies were profitable.
Who dropped out of the top?
This year’s Index did not include Inguletsky GOK, whose revenue decreased by 32%, and Ukrnaftoburinnya (-38%), which was previously part of the group of companies owned by Ihor Kolomoisky and became state-owned by a court decision. Currently, Ukrnaftoburinnya is managed by Ukrnafta.
https://opendatabot.ua/analytics/index-mining-industry-2024
extractive industry, RINAT AKHMETOV, SCM, UKRGASVYDOBUVANNYA, UKRNAFTA
