Two new drilling rigs with a carrying capacity of 450 tonnes from China’s Sichuan Honghua Petroleum Equipment arrived in Odesa seaport late on Monday, the press service of JSC Ukrgazvydobuvannia has reported.
Ukrgazvydobuvannia Board Chairman Oleh Prokhorenko said that as of 2016, the average age of drilling rigs of the company was 23, and the average age of drilling rigs in Russia was 10 years and in Belarus – nine years.
“Finally, Ukraine has begun to invest in the development of its own gas production, its own drilling fleet and the exploration of its own resources. The arrival of these new drilling rigs is one of many concrete steps that will increase gas production in Ukraine,” he said.
As reported, late 2017, Ukrgazvydobuvannia signed a contract with Bentec GmbH Drilling & Oilfield Systems (Germany) to supply five drilling rigs with a capacity of 450 tonnes (2,000 HP) for $110 million. The first rig was delivered to the company in October 2018.
It is also planned to buy ten Chinese drilling rigs with a capacity of 450 tonnes.
Schlumberger Services Ukraine LLC will provide coiled tubing (CT) services, including high-tech services using CT drilling rig and engineering support, for $92 million to JSC Ukrgazvydobuvannia. According to a report of Naftogaz Ukrainy, the respective contract, which is to be implemented in the next three years, was signed with Schlumberger Services Ukraine in October 2018. One CT drilling rig has been shipped to Ukraine and is ready to be exploited at wells of Ukrgazvydobuvannia.
“Ukrgazvydobuvannia expects to improve its technological expertise and enhance the production of hydrocarbons using highly efficient CT services and other technologies provided by Schlumberger,” the company said.
In addition, Naftogaz and Ukrgazvydobuvannia intend to further enhance their strategic technology collaboration with Schlumberger Services Ukraine LLC in drilling, hydraulic fracturing, hydraulic stimulation, software development and 3D modeling, as well as the provision of advanced equipment and software solutions. The companies have signed the respective memorandum of understanding.
Naftogaz said that this collaboration with Schlumberger will give Ukrgazvydobuvannia and Naftogaz access to high-technology solutions to help deliver their Strategy 20/20 goals.
Schlumberger is the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry.
JSC Ukrgazvydobuvannia has been announced a winner of the auction held by the State Service for Geology and Deposits to sell a license for the use of Lypovetske gas condensate field (Lviv region). The company offered UAH 15.1 million for the license.
The authority reported that the sum is more than four times larger than the starting price – UAH 3.5 million.
Stryinaftogaz LLC (the founders of the company are Petro Hryniv, Oleh Kurochkin and Yuriy Petrushko) won at an auction to receive the license for the Chernystia gas condensate field (Lviv region). The company offered UAH 2.04 million for the license.
Five more companies participated in the auction.
This was the first auction to sell licenses for the use of oil and gas field in the past two years. Ukrgazvydobuvannia said that for the company it was the first auction in the past 10 years.
The European Bank for Reconstruction and Development (EBRD) is mulling a project to provide a debt funding of EUR 51.9 million to PJSC Ukrgazvydobuvannia to finance the procurement of workover rigs and a package of energy efficiency investments.
According to a report on the bank’s website, the Board of Directors will discuss the project on December 12, 2018.
According to the document, the loan will benefit from a sovereign guarantee by Ukraine.
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.
As reported, the EBRD recently defined operational and strategic priorities in Ukraine for the next five years: privatization and improved governance in the public sector, energy security and energy efficiency.
The EBRD is the largest international financial investor in Ukraine. To date, the bank has made a cumulative commitment of almost EUR 12.1 billion across some 400 projects since the start of its operations in the country in 1993.
Zhongman Petroleum and Natural Gas Group Corp. (China) has won a tender of JSC Ukrgazvydobuvannia to buy a new mobile drilling rig with a capacity of 125 tonnes for UAH 351.08 million (VAT included). According to the ProZorro e-procurement system, Ukrgazvydobuvannia posted a notification about the plans to sign the contract on October 2. The equipment is to be delivered before May 31, 2019. Sichuan Honghua Petroleum Equipment Co., China Petroleum Technology & Development Corporation, Yantai Jereh Petroleum Equipment & Technologies Co. and Redditizio Limited took part in the tender.
According to the tender documents, the drilling rig will be used to overhaul wells with depth of up to 6,000 meters and drill wells with depth of up to 2,800 meters. As reported, at the end of 2017, Ukrgazvydobuvannia signed a contract with Bentec GmbH Drilling & Oilfield Systems (Germany) to supply five drilling rigs with a capacity of 450 tonnes (2,000 HP) for $110 million. The first rig will be supplied in October 2018.
PJSC Ukrgazvydobuvannia has signed contracts with Xinjiang Beiken Energy Engineering (XBEE) and Zhongman Petroleum and Natural Gas Group (ZPNGG) to drill 36 wells for UAH 4.032 billion. According to a report in the ProZorro e-procurement system, at the end of July the contract with ZPNGG for UAH 723.52 million was signed (lot 7), and the contract with XBEE for UAH 3.308 billion (lots 1-5) was signed at the end of August.
The company rejected the proposal of Energofinance LLC for lot 6 and plans to sign a contract with XBEE for UAH 776.991 million.
As reported, Ukrgazvydobuvannia announced a tender for drilling 42 more wells at the end of December 2017. The tender was held early February.
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.