Business news from Ukraine

“Ukrnafta” launches black high-capacity drilling rig in Ukraine’s West

28 May , 2024  

PJSC “Ukrnafta” has launched a black high-development well in Ukraine’s West, the company’s press-service announced on Tuesday.

According to its data, the result more than doubled the forecasted one: the well flow rate is 54 tons per day with the expected 22.6 tons.

The object was planned as an exploratory well with the purpose of discovering deposits of stratigraphic deposits at a depth of more than 1.2 km. The drilling works were performed by Navigator-Komplekt LLC selected through a tender on Prozorro. This is the first of three wells to be constructed by this contractor.

“Ukrnafta” received a high-yield well and, more importantly, a technology to increase production at a particular field. Acid fracturing (AHF) is included in the investment projects for the construction of all wells at this field,” said the company’s director Serhiy Koretskyy.

As reported, Ukrnafta in 2023 increased production of oil with condensate by 3% (by 39.9 thousand tons) compared to 2022 – to 1 million 409.9 thousand tons, gas – by 5.8% (by 60.4 million cubic meters), to 1 billion 97.4 million cubic meters.

The company’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters respectively by 2027.

“Ukrnafta, Ukraine’s largest oil producer, is the operator of a national network of 537 gas stations, of which 456 are operational. The company is implementing a comprehensive program to revitalize its operations and update the format of its network of gas stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTACard, sold to legal entities and individuals through Ukrnafta-Postach LLC.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share stake. On November 5, 2022, the Supreme Commander-in-Chief of the Ukrainian Armed Forces decided to transfer to the state the share of corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense.