Ukrnafta’s stoppage of production at 5 fields in Sumy oblast has led to significant decline in utilization rate of Gnidyntsy and Kachinivka gas processing plants. As the company reported earlier, the State Geological Service did not extend Ukrnafta’s 9 licenses expiring this year despite absence of legal grounds for doing so.
Following the stoppages, the Gnidyntsy gas processing plant has seen the supply of oil and condensate decline by 50% and of natural gas by 80%. The gas processing shop has been shut down (incl. the absorption gas fraction plant with gas cooling and drying units and compressor station). Production of LPG at Gnidyntsy has declined by almost 80% from 3 200 tons to 700 tons per month.
The equipment of the booster compressor station operates at a critically low utilization rate, which poses a challenge for maintaining continuous operation. Long-term operation of the compressor and technological equipment in this mode can lead to a complete shutdown of the Gnidyntsy gas processing plant. As a result, the plant will stop receiving oil, condensate and gas from all other operating fields, which will lead to interruption of gas supply to the city of Priluky and other communities in Priluky and Varvinsky raions of Chernigiv oblast.
Ukrnafta was also forced to suspend the Anastasivske gas lift compressor station and reduce utilization rate at the Kachinivka gas processing plant, leading to a 30% decline in monthly production of LPG from 6 400 to 4 300 tons.
In June 2017, Ukrnafta was forced to stop production at 5 fields in Sumy oblast as the State Geological Service refused to fulfil its obligations to extend the licenses.
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