Business news from Ukraine

UKRAINE INCREASES GAS PRODUCTION BY 3.6% IN JAN-APR

Production of natural gas in Ukraine in January-April 2019 increased 3.6% or by 245.1 million cubic meters (mcm) year-over-year, to 7.016 billion cubic meters (bcm), according to a preliminary report of JSC Ukrtransgaz. According to the calculations of Interfax-Ukraine, gas production by JSC Ukrgazvydobuvannia amounted to 5.14 bcm (2.7% more from January-April 2018), PJSC Ukrnafta to 382.9 mcm (11.2% more), other companies to 1.493 bcm (5% up).
In April 2019, gas production amounted to 1.741 bcm (4.3% up from April 2018), in particular production by Ukrgazvydobuvannia amounted to 1.272 bcm (2.5% more), Ukrnafta to 93.7 mcm (12.9% up), and other companies to 375.9 mcm (8.5% up).

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UKRNAFTOBURINNIA SEES 50% RISE IN GAS PRODUCTION

One of the largest private gas production companies in Ukraine – private joint-stock company Ukrnaftoburinnia in January-March 2019 saw a 50% rise in gas production year-over-year, to 166 million cubic meters (mcm), and a 49% rise in oil and condensate production, to 21,000 tonnes, the company’s press service has reported.
“The growth of production indicators was linked to significant investment in exploratory drilling in 2018. The wells that were developed last year opened up a number of new deposits, the potential of which turned out to be somewhat higher than our expectations,” Head of the geology department Volodymyr Novikov said.
According to the results of 2018, Ukrnaftoburinnia increased natural gas production 38.1% compared to 2017, to 550.28 mcm.
Ukrnaftoburinnia is one of the largest private gas producing companies in Ukraine. Since 2010 it has been developing Sakhalynske oil and gas condensate field (Kharkiv region). The company operates 24 gas condensate, oil and gas wells. In the framework of agreements on joint activities it additionally operates ten gas condensate wells.
According to an information disclosure system of the National Commission for Securities and the Stock Market, the largest shareholders in the company are Deripon Commercial Ltd. (Cyprus) with 44.989%, companies Ares Systems Ltd. and Ariana Business Limited registered at the same address in London with 22.4996% and JKX Ukraine B.V. with 10%. MP Vitaliy Khomutynnik said in August 2016 that he owns Deripon Commercial Ltd. on parity basis with Ihor Kolomoisky.

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SMART ENERGY GROUP PLANS TO INVEST UAH 1 BLN IN NATURAL GAS PRODUCTION

Smart Energy Group plans to invest about UAH 1 billion in increasing natural gas production in 2019, director general of the group of companies Serhiy Hlazunov has said at a press conference in Kyiv.
“Investments are foreseen for drilling new wells – we have plans to drill four new wells this year. We also plan to overhaul both our wells and those of Ukrgazvydobuvannia located in our fields,” he said.
According to him, the company as a whole expects to overhaul five wells this year. Of the four wells planned for drilling, one could be put into operation before the end of 2019.
Commenting on gas production plans, he added that the company expects a 10% growth (about 30 million cubic meters), to 325.2 million cubic meters.
In 2018, the group of companies increased natural gas production by 31% compared with 2017, to 296.7 million cubic meters, gas condensate output by 40%, to 25,700 tonnes, that of liquefied gas by 49%, to 6,900 tonnes.

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