Business news from Ukraine

SMART ENERGY REDUCES PRODUCTION OF GAS

Smart Energy in January-June 2021 reduced gas production by 0.2% (by 300,000 cubic meters) compared to the same period last year, to 199 million cubic meters, the press service of the group said.
In addition, the production of gas condensate by the companies of the group increased by 1.2%, to 17,800 tonnes, liquefied propane-butane – by 12.3%, to 5,100 tonnes.
According to the press service, despite the natural depletion of reservoir energy in the productive horizons of the fields developed by Smart Energy, the group continues to maintain production volumes at a stable level.
“We are keeping our production of natural gas stable, primarily due to our new wells in Poltava region. Taking into account this fact and positive dynamics of price for natural gas, we are planning to spud at least two more new wells in H2 this year,” Serhiy Hlazunov, the CEO of Smart Energy Group, said.
“In February the company spudded one more new development well, No. 29, at Svyrydivske field as well. The target depth is 5,450 meters. Currently the well has reached a depth of approximately 5,250 meters. Drilling operations are ahead of schedule. Subject to successful testing, production hook-up is now expected by the end of Q3, 2021,” the report says.
“Arkona Gas-Energy is getting ready to development of Svystunkivsko-Chervonolutske field (Poltava region). The company is completing supplementary prospecting and exploration as well as design works. During next two months it is spudding well No. 4. Start of 3D seismic is planned for Q4 this year as well,” the company said on its website.
“Preparations for upgrade works to the gas processing plant are in progress. The upgrade includes equipment modernization and increase to the liquids tank storage capacity. The works are scheduled to commence in Q4, 2021,” it said.

, ,

UKRAINIAN SMART ENERGY PLANS TO INVEST $400 MLN IN HYDROCARBON PRODUCTION

Smart Energy plans to invest $ 400 million in hydrocarbon production by 2031, CEO of the group of companies Serhiy Hlazunov has told reporters, presenting the results of ten years of activity in the market.
According to him, the total volume of Smart Energy investments in production for 2011-2020 amounted to UAH 3.5 billion, in particular, in 2019 – UAH 687 million, in 2020 – UAH 541 million.
The total amount of taxes paid for this period exceeded UAH 7.6 billion, in particular, in 2019 – UAH 1.291 billion, in 2020 – UAH 947 million.
Hlazunov said that in the next ten years, the group plans to drill over 30 new wells, while in the previous ten years, 13 wells were drilled. The existing Smart Energy park currently consists of 29 wells.
As reported, Smart Energy in 2020 increased natural gas production by 8.6% (by 31.8 million cubic meters) compared to 2019, to 400.6 million cubic meters, gas condensate – by 4.8% (by 1,600 tonnes), to 34,700 tonnes, and production of liquefied propane-butane – by 9.5% (by 800 tonnes), to 9,200 tonnes.
Smart Energy is a management company, part of Vadim Novinsky’s Smart-Holding Group, which implements projects in the field of hydrocarbon production and alternative energy. The group’s oil and gas business is represented in Poltava and Kharkiv regions by PrJSC Ukrgazvydobutok, the British public company Enwell Energy with assets in Poltava region, Prom-Energo Product LLC and Arkona Gas-Energy LLC.

,

SMART ENERGY BOOSTS GAS PRODUCTION IN 2020

Smart Energy increased its summary gas production by 8.6% in 2020 year-over-year, to 400.6 million cubic meters, the press service of the group has reported.
In addition, condensate production grew by 4.8%, to 34,700 tonnes.
“Increase of overall production volumes by Smart Energy in 2020 is a result of wells No. 61 and No. 62 launch after workovers at Ostroverkhivske field as well as new volumes of hydrocarbons, resulted with launch of a new well (No. 54) at Svyrydivske field in May of 2020. Meanwhile, a decline in production rates from well No. 10 of Vasyshchivske field continues due to the natural depletion. Therefore, in Q1, 2020, compression equipment was installed to increase production from Vasyshchivske field. And workover is planned to commence in late Q1 of 2021 to access an alternative reservoir horizon, with the aim of boosting production from this well,” the press service said.
Last year the group completed drilling a new well, completed two workovers, installed two new compressors, received the grant of extension of two licenses, and become an owner of a new licence for Svystunkivsko-Chervonolutske field through acquisition of Arkona Gas-Energy LLC.
For the reported period well No. 25 at Svyrydivske field has been drilled to its target depth of 5,320 metres, and logging and completion operations have been performed. It is anticipated that initial testing of the well will commence by the end of January 2021. Subject to successful testing, production hook-up is planned to be completed by the end of Q1 of 2021.
Currently, planning for the drilling of well No. 29 at Svyrydivske field is progressing, with the well due to be spudded in Q1 of 2021. At Vasyshchivske field planning is continuing for a new well to explore the Vvdenska (VED) prospect within the Vasyshchivske licence area. At Ostroverkhivske field processing and interpretation of data of 3D-seismic studies have been completed. The results provide the ground for drilling a new well, due to be spudded in 2021 as well.
“Last year turned out to be rather difficult and not only for the industry, but for all of us in general. Due to our numerous safety measures and high professionalism of our team, Smart Energy Group has not experienced any significant impact so far. We continued to increase production volumes and execute our projects. Nevertheless, we have pretty restrained expectations regarding a new year as lower gas prices and the global economic crisis, strengthened with pandemic COVID-19, will have their impact on gas production,” CEO of Smart Energy Group Serhiy Hlazunov said.

, ,

SMART ENERGY LAUNCHES NEW WELL IN UKRAINE

The British company Regal Petroleum, part of the Smart Energy group, received an industrial influx of hydrocarbons from a new exploration well with a depth of 5,322 meters on Svyrydivske field (Poltava region).
“Well SV No. 54 that was spudded in October 2019 has already obtained the commercial inflow of natural gas and gas condensate at the level of 80,000 cubic meters/day and 5 tonnes/day respectively. Currently, the well testing is undertaken, while it is hooked-up to the gas processing facilities,” the company said on its website.
“Modern technologies of well drilling and casing, unique technical solutions, applied while development and testing of well No. 54, enabled to minimize the negative influence on productive reservoirs, retain their fluid loss properties, obtain strong hydrocarbons flow and put a well on production ahead of schedule,” Viktor Dudzych, the CTO of Smart Energy Group, commented.
“Earlier, in Q4, 2019, Smart Energy Group put well No. 119 on operation at Mekhedivsko-Golotovshchynske field in Poltava region. Currently, its average daily production rate is 140,000 cubic meters/day for gas and 25 tonnes/day for gas condensate,” the report says.

SMART ENERGY REACHES 1 MCM DAILY PRODUCTION OF NATURAL GAS

Smart Energy group, following the results of drilling and overhaul projects, has reached the daily production of natural gas in the amount of one million cubic meters (mcm), the press service of the group has said.
Among the successful well overhaul projects, Smart Energy noted the decommissioning of well No. 1 in Ostroverkhivske gas condensate field (Kharkiv region), located in the license area of Ukrgazvydobuvannia.
As reported, in 2019 the group plans to invest about UAH 1 billion in the increase of natural gas production.
Earlier, in January 2019, the group announced that it had reached a historic daily maximum of 960,000 cubic meters of gas.
Smart Energy is a management company that is part of Vadim Novinsky’s Smart-Holding. It is engaged in the implementation of projects in the field of hydrocarbon production and alternative energy.

, ,

SMART ENERGY MULLING PARTICIPATION IN OIL AND GAS ELECTRONIC AUCTIONS

The Smart Energy Group is mulling a possibility of participating in the first electronic oil and gas auction scheduled for March 6, 2019, Smart Energy CEO Sergei Glazunov said at a press conference in Kyiv. “We looked at 10 licenses that are exhibited on March 6. There are several interesting facilities there, and we are now deciding whether to participate in them. We hope that the auctions will be held as expected – transparently and in an understandable way,” Glazunov said.
As reported, on October 24, 2018, a temporary procedure for implementing a pilot project for the introduction of electronic trading in the sale of licenses for the use of subsoil came into force. In accordance with it, the licenses are sold exclusively through electronic bidding.
On December 6, 2018 the State Service for Geology and Mineral Resources put up the first 10 sites for electronic oil and gas auctions. At the second round at the end of January seven more sites were exposed.
The first auction will take place on March 6, 2019.

, , , ,