Business news from Ukraine

Ukrnafta prepares to drill two wells in Lviv region

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.

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New industrial park appeared in Lviv region

The Cabinet of Ministers has created the Stryi Valley industrial park in the Lviv region, which will ensure, in particular, the development of the processing industry in the region and create about 700 new jobs, Prime Minister Denys Shmygal said.
“We hold a consistent course on all-round business support. Today we are creating another industrial park, the Stryi Valley in the Lviv region,” Shmygal said at a government meeting on Tuesday.
According to the Prime Minister, the implementation of this decision is expected to create about 700 jobs and the development of processing in the region, particularly in the food industry, woodworking and mechanical engineering.

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BEB seized more than 330 thousand packs of counterfeit cigarettes in Lviv region

Detectives of the territorial department of the Bureau of Economic Security (BES) in Lviv region have exposed a large-scale scheme of selling illegally manufactured tobacco products and smuggling them abroad, the agency’s website reported on Wednesday.
According to its data, the detectives of the Bureau in Lviv region conducted an immediate inspection of a truck with excisable goods, and in Zakarpattya region they searched a warehouse. During the search revealed and seized more than 330 thousand packs of tobacco products without excise tax marks, about 1.5 tons of hookah tobacco, a vehicle, as well as rough records and documentation evidence of illegal activities. The preliminary total value of excisable products seized from the illegal turnover is almost 18 million UAH.
Currently, measures are taken to establish the full range of persons involved in the scheme, the primary investigative actions.
BEB clarified that the pretrial investigation into criminal proceedings on criminal offence under Part 1 of Article 204 of the Criminal Code of Ukraine (illegal storage and transport with intent to sell excisable goods) is carried out by detectives of the territorial administration of the Lviv region, under the procedural guidance of prosecutors of the Lviv Regional Prosecutor’s Office.
As reported with reference to the tobacco market research institute “Kantar Ukraine”, the share of illegal tobacco products on the Ukrainian market in August 2022 increased by 5 percentage points (p.p.) compared to the annual average of 2021 – up to 21.9% from 16.9%, the volume of shadow market was the highest since the independence of Ukraine.
The Institute specified that 56% of the tobacco products illegally sold in 2022 as export or Duty Free products have the mark of production of Vinnikivska Tobacco Factory (Vinniki, Lviv region) and marked as not intended for sale in Ukraine. The share of unidentified producers was 24% (in 2021 – 23%), United Tobacco LLC (Zheltye Vody, Dnepropetrovsk oblast) – 19% (in 2021 – 15%).

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Kharkiv manufacturer “Kulinichi” invests EUR20 mln in construction of bakery in Lviv region

LLC “Kulinichi” (Kharkiv region), a major manufacturer of bread and bakery products, has begun construction of a bakery in the Lviv region with a capacity of up to 150 tons of bread per day, part of which will be sold for export, according to the Ukrainian diplomat’s Facebook page Mikhail Bno-Ayriyan.
At the same time, it is specified that investments in the enterprise will amount to EUR 20 million over two years, part of the equipment for the plant will be transported from the Kulinichi plant in the Kharkiv region.
In turn, the bread manufacturer on his official Facebook page confirmed that he had begun construction of an enterprise in the Lviv region, but stressed that this did not mean the closure of the plant in the Kharkiv region.
“Yes, we are really building a new plant near Lviv. We are not closing the plant in Kharkiv, we are not closing our retail outlets in Kharkiv (…) We will bake bread for you, no matter what,” the Kulinichi page says in social network.
LLC “Kulinichi”, operating in Ukraine since 1995, unites 8 bakeries of the Kharkiv region and plants of the Poltava, Donetsk and Kyiv regions.
Since 1999, LLC has been cooperating with the Slovenian enterprise Gostol-Gopan.

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IT IS PLANNED TO BUILD IT CAMPUS FOR REPRESENTATIVES OF CREATIVE INDUSTRIES IN LVIV REGION

It is planned to build an IT campus for representatives of creative industries in Lviv region, Artem Honcharenko, President of the International Technology Transfer Association (ITTA) and the Fund for Reconstruction and Development of Ukraine, has said.

“Currently, we are implementing such a project, we have found a site in Lviv region. The legal process will begin soon. We plan to build the first campuses during the summer, where it will be possible to attract foreign partners and IT specialists, creative industries, youth to create a platform for discussion and start-ups,” Honcharenko said during a press conference at Interfax-Ukraine on Thursday.
He clarified that there are already agreements on the allocation of a land plot in Lviv region with an area of 8 hectares. The project provides for construction of campuses no more than five floors, the total area of spaces will be 10,000 square meters.

According to Honcharenko, the campuses of the town will be able to host up to 1,000 participants, and construction of places of temporary residence is also envisaged. In addition, a rehabilitation center as part of the technology park will be designed for 500-600 people.
Previously, the creation of such towns was planned in Kyiv region, Kharkiv, Odesa, and Lviv.
“We postponed construction of such a center in Kharkiv to the post-war period. We will start talking with local authorities about what needs to be taken into account for construction of such a town of creative industries in terms of restoring the city,” the ITTA president said.
“We would like to create not only a place for communication, but also, perhaps, with flexible taxation conditions, with the possibility of entering international markets,” he stressed.
The Ukrainian non-profit organization International Technology Transfer Association (https://itta.org.ua/) was founded in 2020, its activities include software development, development of the IT sector in Ukraine. In April 2022, ITTA co-initiated the creation of a charitable foundation for Reconstruction and Development of Ukraine to organize and deliver humanitarian aid to Ukraine.

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ANOTHER BIOGAS POWER PLANT WAS LAUNCHED IN THE LVIV REGION

Naftogaz Ukrainy and a group of companies Clear Energy as part of a joint project launched a biogas power plant operating on Saturday at the landfill in Veliki Gribovichi in the Lviv region, according to NAC.
“Development of low-carbon businesses is a strategic choice of Naftogaz. Thanks to the biogas power plant built here, 38 hectares of landfill emitting millions of cubic meters of harmful landfill gas will become a source of energy for surrounding households,” said Yu.
The plant produces 2.645 million kWh per year, replacing more than 800,000 cubic meters of natural gas. “This allows us to provide green electricity to about 735 households and at the same time reduce CO2 emissions by about 30,000 tons per year,” said Peter Bagriy, co-founder and head of the Clear Energy Group’s supervisory board.
Vitrenko stressed that it is very important that even in the difficult conditions of the war, the company still continues to develop and implement such projects. “According to our estimates, this facility will not release more than 2 million cubic meters of methane, which is 30 times more harmful to the climate than carbon dioxide,” he added.
In addition, the report notes, landfill gas, which is formed during anaerobic (no air access) decomposition of organic waste residues (food residues, leaves, twigs, etc.), is also one of the causes of fires and explosions in landfills, and now this risk will be eliminated.
“The opening of this facility is the next stage in the reclamation of the landfill, the next stage in ensuring the environmental safety of residents of Lviv and the region,” said the head of the Lviv OVA Maxim Kozitsky.
Lviv Mayor Andrei Sadovy, who also took part in the opening ceremony, reminded that the city is implementing the reclamation project in Velykyi Gribovichi thanks to the support of European banks. According to him, technical reclamation is currently underway, which includes the construction of a system for collecting, preparing and disposing of landfill gas with the generation of electricity.
The plant is equipped with Austrian Jenbacher equipment used in biogas projects throughout Europe.
Biogas is collected with the help of wells, which are evenly distributed on the body of the landfill, and a system for collecting surface gases. Currently, 29 vertical wells to a depth of 12.5 m and 4 horizontal wells have been drilled at this landfill. From each well there is a pipeline (loop) to the gas collection point.

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