PJSC Ukrnafta is waiting for applications from potential partners for the joint development of 21 fields by January 10, 2024, the company’s press service reports.
According to the company, these are 10 fields in the west and 11 in the east of Ukraine.
It is specified that Ukrnafta plans to fully unlock the potential of its fields with sufficient reserves but low production rates, so it expects its partners to be ready to invest funds and technologies in exploration and production.
“If we talk about 2P reserves, i.e. proven and probable reserves, it is more than 12 million tons of oil and more than 31 billion cubic meters of gas,” said the company’s director Sergiy Koretsky.
According to the press release, Ukrnafta has already prepared draft contracts based on the best international practices. Preference is given to Product Sharing Agreements. The company’s contribution will be the field and the right to use the existing production infrastructure, while the partner’s contribution will be a field development plan to intensify production and finance the relevant works.
The algorithm for applying and selecting potential investors is as follows: candidates declare their interest, go through compliance procedures, get access to the Virtual Data Room with detailed information about the fields, and submit proposals for development plans and terms of cooperation.
Ukrnafta then evaluates the proposals, negotiates and selects the winners separately for each field. The parties then agree on the final text of the production sharing agreement, followed by the Cabinet of Ministers, after which the development plan is implemented.
Profits will be distributed according to the agreed terms.
As reported, Ukrnafta, which has been fully controlled by the state since the end of 2022, has a strategic goal to double oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively. In 2023, the company plans to increase oil production by 5.8% (by 0.077 million tons) compared to last year to 1.447 million tons, and gas production by 0.3% (by 0.003 million cubic meters) to 1.04 billion cubic meters.
Ukrnafta and SOCAR have agreed on the mutual circulation of fuel cards in their networks by signing an agreement on an inter-member program.
According to Ukrnafta’s press release, legal entities holding its NAFTACard and SOCAR’s sCard with a cash deposit can get the required amount of fuel at both networks with discounts from the price of the filling station on the date of their visit.
Payment is made using funds on the accounts linked to the fuel cards.
“This allows the customers of both companies to expand the geography of their filling stations: Ukrnafta’s network now has 456 filling stations, and SOCAR’s network has 57. So, no matter where you are, you can always fill your car with quality fuel at a favorable price,” the press release says.
As reported, at the end of September this year Ukrnafta started working with BVS (75 filling stations), VST (88 filling stations) and Ovis (43 filling stations) networks in the field of fuel cards.
“Ukrnafta is the largest oil company in Ukraine and operates a national network of 537 filling stations, of which 456 are in operation.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 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 owned by private owners, which is now managed by the Ministry of Defense.
State-owned PJSC Ukrnafta is building three new wells in western Ukraine, both using its own drilling rigs and engaging contractors with relevant experience, the company said in a press release on Saturday.
“We are currently assembling a drilling rig from our partners at BC Horizons LLC, selected through a transparent tender procedure. First, this equipment will be used to drill well No. 32, then No. 34 at the Verkhnemaslovetske field,” said Sergiy Koretsky, Ukrnafta’s CEO.
It is specified that the purpose of well No. 32 is to explore deposits of the Stryian sediments, and then, depending on the geological results of this well, No. 34 will be drilled, which should go deeper – to menilite deposits.
According to the release, the next step is to drill another well, No. 33, also into the Stryian deposits, but a different drilling rig will be used for this purpose.
It is specified that the company’s own drilling rigs are also busy: two are working on new wells in the east and west, and another will drill a sidetrack – in fact, a new well in an old one – in northern Ukraine.
Ukrnafta is the largest oil producer in Ukraine, holding 87 special permits for hydrocarbon production, and operating in eastern and western Ukraine. At the end of June, the company announced a tender for the construction of three slant wells at the Verkhnemaslovetske field with an expected cost of UAH 184 million (excluding VAT). The new facilities are to be commissioned by June 30, 2024. The new wells should discover promising deposits within the field discovered in 2000. In total, four new wells are planned to be constructed at the Verkhnemaslovetske field in 2023 and five more in 2024. These will be both directional and horizontal wells.
“In 2023, Ukrnafta plans to increase oil production by 5.8% (by 0.077 million tons) compared to last year to 1.447 million tons, and gas production by 0.3% (by 0.003 million cubic meters) to 1.04 billion cubic meters.
The company also operates a national network of 537 filling stations, of which 456 are in operation. 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. On November 5, 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 owned by private owners, which is currently managed by the Ministry of Defense. In November 2022, Koretskyi was appointed director of the company.
PJSC Ukrnafta is preparing to drill two wells #32 and #34 at the Verkhnemaslovetske field in Lviv region, the company’s press service said on Thursday.
Both wells are planned as directional and exploration and production wells.
Well No. 32 with a depth of 1,250 meters is expected to uncover the Stryian deposits. According to the digital 3D geological and hydrodynamic model of the field, the current recoverable oil reserves in the productive horizons of the Stryy formation amount to 1.121 million tons. The initial production rate is expected to be 42.5 tons of oil per day.
Well No. 34 will be drilled to a depth of 1,550 meters to the mesolithic deposits. The current recoverable oil reserves in the productive horizons of the Mnemiolite formation amount to 464 thousand tons. After the well has developed the drained reserves of the Menelitic deposits, it will be transferred to the overlying horizons of the Stryian deposits. The initial flow rate is 30.1 tons per day.
“The facilities will be built by a contractor with experience in western Ukraine, Horizons Drilling Company LLC, selected through a transparent procurement procedure, and will be completed on a turnkey basis,” said Sergiy Koretsky, Ukrnafta’s CEO.
As reported, in late June Ukrnafta announced a tender for the construction of three inclined wells at the Verkhnemaslovetske field with an expected cost of UAH 184 million (excluding VAT). The new facilities are to be commissioned by June 30, 2024. The new wells should discover promising deposits within the field discovered in 2000.
In total, four new wells are planned to be constructed at the Verkhnemaslovetske field in 2023 and five more in 2024. These will be both directional and horizontal wells.
“In 2023, Ukrnafta plans to increase oil production by 5.8% (by 0.077 million tons) compared to last year to 1.447 million tons, 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’s Office decided to seize Ukrnafta shares (except for the controlling stake in Naftogaz of Ukraine) as military property for the duration of martial law. Before the seizure, the structures of Ihor Kolomoisky and Hennadiy Boholyubov owned about 42% of Ukrnafta shares.
PJSC “Ukrnaftoburnia” (“UNB”) according to the results of work in the first half of 2023 received a profit of 700 million UAH, said the director of PJSC “Ukrnafta”, to which the company is transferred in management, Sergiy Koretskyy.
“In the first half of 2023, the company received 700 million UAH of profit. There are reasons to believe that according to the results of the second half of the year “UNB” will be able to earn almost three times more. We state the fact of a significant increase in realization prices,” he wrote on his Facebook page.
“As stipulated by the concluded contracts with ARMA, 90% of net profit will be transferred in favor of the state,” Koretskyi specified.
According to him, the company also managed to eliminate technological deficiencies and launch the 88th well.
“After the drilling was completed, we received a flow of high-pressure formation water from the upper horizons. We carried out repair and water isolation works. Consequently, we increased production by 170 thousand cubic meters of gas and 30 tons of condensate per day,” he said.
In addition, “UNB” plans to soon complete commissioning of the booster compressor station, which will slow down the natural decline in production.
As reported, after the arrest and court decision to transfer to the management of ARMA “Ukrnaftoburnia”, LLC “Sakhalinskoye”, LLC “Sirius-1”, LLC “East Europe Petroleum” in the case on the legality of subsoil use of the Sakhalin field, the Cabinet of Ministers of Ukraine by the order №454-r of May 23, 2023 supported the proposal to transfer to the management of “Ukrnafta” corporate rights in these companies.
At the end of June, the AMCU authorized Ukrnafta to receive shares in the authorized capitals of these companies for management. On July 7, the acts of acceptance and transfer of assets were signed.
“Ukrnafta is one of the largest private gas production companies in Ukraine. Since 2010, it has been developing the Sakhalin oil and gas condensate field (Krasnokutsk district, Kharkiv region) with reserves of 15 billion cubic meters of gas. The company’s gross production in 2020 will amount to 725.4 million cubic meters of gas and 80.8 thousand tons of oil and condensate, in 2021 – 691.3 million cubic meters and 76.6 thousand tons.
For the Sakhalin field as a whole, gas production in 2020 amounted to 844.3 million cubic meters and 86 thousand tons of oil and condensate, in 2021 – 789.5 million cubic meters and 80.8 thousand tons.
PJSC “Ukrnafta” in January-July 2023 increased production of oil with condensate by 4.5% (by 36 thousand tons) compared to the same period of 2022 – up to 828 thousand tons, the press service of the company reported.
The average daily production of oil with condensate for seven months of 2023 was 3.9 thousand tons, 2022 – 3.7 thousand tons, 2021 – 4 thousand tons.
Ukrnafta’s gas production in January-July 2023 increased by 6.8% (by 40 million cubic meters) compared to the same period of 2022 – to 628 million cubic meters.
Average daily gas production for seven months of 2023 amounted to 2.964 million cubic meters, 2022 – 2.772 million cubic meters, 2021 – 3.015 million cubic meters.
According to the press-service, for seven months of the current year 65 workovers, 18 stimulations, 15 stimulations without workover crews, 13 coiled tubing operations were carried out at the company’s fields. 21 wells were brought out of inactivity.
“Cumulatively, these and other measures brought additional 52 thousand tons of oil and 28 million cubic meters of gas,” the company said.
In addition, Ukrnafta in January-June 2023 transferred 12.32 billion UAH of taxes to budgets of all levels, including 1.187 billion UAH of income tax for the first quarter and 2.077 billion UAH – for the second quarter.
As reported, Ukrnafta, which has been fully under state control since the end of 2022, has set a strategic goal to double its oil and natural gas production to 3 million tons and 2 billion cubic meters respectively by 2027. In 2023, the company plans to increase oil production by 5.8% (up 0.077 million tons) year-on-year to 1.447 million tons, and gas production by 0.3% (up 0.003 million cubic meters) to 1.04 billion cubic meters.
On November 5, 2022, the Supreme Commander-in-Chief decided to seize the shares of Ukrnafta and Ukrtatnafta (except for the controlling and blocking stakes of Naftohaz Ukrainy, respectively) as state property during martial law. Prior to the seizure, the structures of Igor Kolomoisky and Hennadiy Bogolyubov owned about 42% of Ukrnafta and, together with other partners, a controlling stake in Ukrtatnafta.
As of the end of March 2023, Ukrnafta had 89 fields with 23 million tons of proven reserves and with 1,806,000 active oil wells and 152 gas wells. The company operates 537 gas stations, of which 28 have been modernized. Sales at them this year are expected to reach 350,000 tons, or about 7% of the market. Last year, wholesale and retail sales of petroleum products totaled 1.665 million tons.
At the end of June 2023, the Antimonopoly Committee of Ukraine (AMCU) allowed Ukrnafta to take control of stakes in the authorized capitals of Ukrnaftoburnia, Sakhalinskoye, Sirius-1, and East Europe Petroleum, which operate in the Sakhalin gas condensate field. In general, the Sakhalin field will produce 844.3 million cubic meters of gas and 86 thousand tons of oil and condensate in 2020 and 789.5 million cubic meters and 80.8 thousand tons in 2021.
condensate, GAS, OIL, UKRNAFTA
