Business news from Ukraine

LARGEST UKRAINIAN GAS PRODUCER DISCOVERS THIRD NEW FIELD IN KHARKIV REGION

JSC Ukrgazvydobuvannia has discovered the third new field in Kharkiv region this year. The press service of the company reported that at the exploration stage the reserves total at least 0.375 billion cubic meters and the prospective resources are estimated at around 1 billion cubic meters. The field was discovered in August 2018 after the completion of drilling a wildcat well started after a seismic survey under a deposit use license issued in 2014.
Today the well is being developed and test production is started. The company continues exploration work at the new field.
Ukrgazvydobuvannia recalled that in May and June 2018 the company discovered two new fields in Kharkiv region on land parcels with mineral resources the licenses for which were received before 2017. Some issues regarding the issue of licenses for new land parcels are still unsettled. According to the government gas production boosting program, the company will receive 15-20 licenses for new land parcels every year to explore and discover new fields.
As reported, the strategy of the company until 2020 envisaged the increase in gas production from 14.5 billion cubic meters in 2015 and 2016 to 15.2 billion cubic meters in 2017, 16.5 billion cubic meters in 2018, 18.3 billion cubic meters in 2019, and 20.1 billion cubic meters in 2020. Ukrgazvydobuvannia, fully owned by Naftogaz Ukrainy, is the country’s largest gas producer, which provides about 75% of the total gas production in the country.

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50 MLN EUR BAKERY COMPLEX CONSTRUCTION STARTS IN KHARKIV REGION

Construction of a bakery complex with a capacity of 150 tonnes a day for EUR 50 million was started in Kharkiv region. According to a posting on the website of the Kharkiv Regional Administration, it is planned to launch the enterprise in the first quarter of 2019.
The area of the new complex will be 12,000 square meters. A total of 14 production lines will be installed.
The specifics of the enterprise will be a possibility of producing frozen types of bread and semi-finished products, which would allow exporting bread.

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UKRGAZVYDOBUVANNIA DISCOVERS NEW FIELD IN KHARKIV REGION WITH PROSPECTIVE RESOURCES OF 1.5 BCM

JSC Ukrgazvydobuvannia has discovered a new field in Kharkiv region, getting commercial gas inflow of 249,000 cubic meters a day from a wildcat, the company’s press service has reported.
The press service said that at the stage of geological exploration the possible reserves were 0.3 billion cubic meters (bcm) and prospective resources are estimated at over 1.5 bcm.
The company said that after receiving the deposit use license, the field and the well were launched in short terms – in 17 calendar months.
The press service said that the period from the issue of a license to commercial use of fields is from two to four years. If new licenses are issues, next gas inflow could be seen no earlier than in two years.
Poltava Regional Council for two years refused to approve licenses over 60 times, and the country would not receive around 1 bcm of gas in 2018.
“The development of new fields is a laborious process that requires the consolidation of scientific, engineering and significant financial efforts. The receipt of licenses does not guarantee 100% of the start of economically expedient exploitation of a field, especially since this process is stretched in time, therefore the company constantly announces the current problem regarding delays in the issuance of new licenses that have not been solved for a long time,” Director of Geology of Ukrgazvydobuvannia Myron Kucher said.

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SMART ENERGY COMMISSIONS NEW 4,620-METER WELL IN KHARKIV REGION

PJSC Ukrgazvydobutok (part of Smart Energy Group) has commissioned a new appraisal and production well on Ostroverkhovske gas condensate field in Kharkiv region, the press service of the group has said.
According to its data, the depth of the well is 4,620 meters, drilling was successfully completed in April 2018.
“Due to the successful implementation of technical solutions we managed to obtain a commercial flow of gas from the Visean deposits at the level of 90,000 cubic meters per day. This figure is 30% higher than the expected output,” Technical Director of Smart Energy Viktor Dudzych said.
The press service noted that the drilling of well No. 10 of Vasyschevske deposit (Kharkiv region) is also underway.
Smart Energy is the managing company in Smart-Holding Group of Vadim Novinsky. It is responsible for the development of projects in the field of hydrocarbon production and alternative energy.

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UKRAINIAN COMPANY LAUNCHES 14TH OWN ASPHALT-CONCRETE PLANT IN KHARKIV REGION AND 5TH ITALY’S MARINI FAYAT GROUP PLANT

Odesa-based Automagistral-Yug has launched an asphalt-concrete plant in the settlement of Derhachi in Kharkiv region, the company’s press service has reported. “We are launching the 14th own asphalt plant in Ukraine and the fifth plant of Italy’s Marini Fayat Group. Thanks to the construction of a new plant, we can hourly produce up to 320 tonnes of asphalt, which is more than 3,500 tonnes per shift, which today is a record indicator for similar enterprises in Ukraine,” Automagistral-Yug Director General Mykola Tymofeyev said. According to the company, the amount of investment in the new production plant was more than EUR 3 million. According to the report, the plant’s products will be sent to the asphalt-concrete coating on the P46 Kharkiv-Akhtyrka road, as well as on the M-03 Kyiv-Kharkiv-Dolzhansky highway and T2104 Kharkiv-Vovchansk road.
According to Tymofeyev, the total amount of work on the roads will be 80 km and will be completed by the end of the year.

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AGROLIGA GROUP COMPLETES CONSTRUCTION OF INNOVATIVE OIL EXTRACTION PLANT IN KHARKIV REGION

Agroliga Group (Kharkiv region) has completed the construction of an innovative oil extraction plant in Nova Vodolaha (Kharkiv region).
According to a report on the group’s website, equipment diagnostics and the testing of technological processes will now be carried out within two months. The inspection is aimed at identifying and eliminating possible defects in the installation of electrical equipment.
After completion of the commissioning works, the plant will be put into operation.
As reported, the total cost of construction and procurement of all necessary components and equipment for the oil extraction plant was estimated at $9 million, of which $6.7 million was financed at the expense of external sources.
The new plant will have the opportunity to change the volume of processing of raw materials in the range from 100,000 tonnes to 170,000 tonnes without additional investment in equipment, and if extra investments are attracted, the capacity could be raise up to 280,000 tonnes per year.
The plant will also be able to reconfigure the equipment for soybean and rapeseed oil production without additional investment in equipment.
Agroliga has been operating in the Ukrainian agricultural market since 1992. Its enterprises are engaged in growing grains, processing sunflower seeds and dairy farming.

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