Kyiv – Ukrnafta PJSC (“Ukrnafta” or the “Company”) (UX: UNAF UK - PFTS: UNAF), Ukraine’s leading oil&gas producer and fuel retail company, today launches a strategic review of its onshore drilling and work-over service operations.
The goal of the strategic review is the establishment of a stand-alone, Ukrainian based onshore service company, providing a full range of oil field services to Ukrnafta and other operating companies within the Ukrainian oil and gas sector.
Ukrnafta is the biggest user of drilling and associated oilfield services in Ukraine. It has a considerable number of drilling units and other peripheral services, spread over 3 regional operational bases (in Sumy, Chernigov and Ivano-Frankovsk regions), which provide all of the in-house services.
Due to the anticipated increase in the Company’s work program combined with the requirement to elevate the level of technical and operational standards, the Company is evaluating a range of strategic options to crystalize the potential of the business.
During the strategic review, Ukrnafta will be conducting a number of discussions with multinational oilfield service companies with a view to selecting the optimum partner(s) who can help in delivering the company’s vision of developing a Ukrainian oilfield service company providing international standards of technology and operational practices.
Chairman of the Management Board, Peter Vanhecke noted:
“Ukrnafta’s management is convinced of the attractive opportunity to create a Ukrainian oilfield service company, based on Ukrnafta’s current service assets. This will be happening at a time when the growth prospects for the industry within Ukraine are strong due to an increase in the level of activity within the established conventional oil and gas industry combined with the exciting future development of the substantial shale resource plays.
This initiative will enable the technological upgrade of the business as well as provide an attractive alternative for all market participants in Ukraine. We also feel that this project is the best way to protect and safeguard a strong sector knowledge base within the country.
Finally, we will be actively looking for an international technology partner or partners to participate in the project. We expect the project to be finalized during the first quarter of 2012”.