Development and sustainable growth: Ukrnafta increases production and upgrades equipment
Development and sustainable growth: Ukrnafta increases production and upgrades equipment

Despite the war, shelling, and losses, Ukrnafta continues to boost oil and gas production, and upgrade equipment and special machinery. This is not only an economic challenge, but a contribution to the country's energy sustainability, the Acting Chairman of the Board of JSC "Ukrnafta" Yuriy Tkachuk stated during the Supplier's Day of the Naftogaz Group.

"Like the entire petroleum industry, Ukrnafta is now taking a difficult path: enemy attacks, protection of facilities, restoration of equipment and production facilities have become part of our routine, – Yuriy Tkachuk said. – Though I want to focus on the key issue - development. The Company must grow not to return to decline observed at the end of 2022. Yes, we are still working with some of the outdated equipment, but we are systematically replacing it, laying the foundation for sustainable growth."

Ukrnafta continues to increase oil and gas production and remains the key partner of the Ministry of Defence of Ukraine.

"Before 2022, Ukrnafta drilled only 1-2 wells a year. In 2025, we plan to complete 25 wells and spud another 7,– said Yuri Tkachuk. – Today, new wells provide about 30% of the Company's incremental production. This is the result of teamwork and partnership with contractors and suppliers. In 2026, we plan to further increase the drilling scopes."

The company consistently replaces obsolete equipment with modern units bringing it to the international standards of the American Petroleum Institute. We are actively implementing production intensification programs, hydraulic fracturing (traditional and acid) and flow-deflecting technologies increase the wells' efficiency.

Since Ukrnafta has a large well inventory that requires continuous servicing, every year the Company repairs about 130 km of pipelines, updates workover equipment, buys modern special machinery, upgrades rigs, and repairs other units.

At the end of 2022, Ukrnafta had a huge fleet of outdated equipment.

After the transition to state administration, over 700 units of special equipment were upgraded. This is about 50% of the required fleet.

A new direction of power generation develops. Ukrnafta is implementing projects to launch gas turbine and gas piston units that will provide additional capacity for the Ukrainian energy system. This is not only a new business direction, but a contribution to national energy independence.

In the current environment, the priority is to protect facilities and personnel. The company builds engineering shelters, strengthens protection systems, and increases the stability of production facilities, because preventive protection is always more effective than recovery from strikes.

UKRNAFTA filling network has undergone a complete transformation in recent years. Today, these are modern gas stations with comfortable halls, high-quality coffee, street food, and Euro-5 fuel, demonstrating a new standard of the state-owned company.