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.
