PJSC Ukrnafta announces its production results for 1H2019.
Highlights:
- stable growth of crude oil, condensate and natural gas production continues (+6.3% and +10.5% respectively y-o-y);
- remote monitoring system has been extended to 183 wells;
- 99 capital workovers and stimulation operations of oil and gas wells and four fracking operations have been completed;
- 76 idle oil wells were reactivated;
- drilling of well #102 was started in Verkhnyomaslovetskiy field;
- Ukrnafta and JV Poltava Petroleum Company launched the joint project on preparation of Ukrnafta`s gas from Novohryhorivskiy field (Poltava oblast).
|
|
1H2019 |
1H2018 |
Change, % |
|
Production of crude oil and condensate, ktonnes |
756 |
711 |
6.3 |
|
Gas production, mln m3 |
577 |
522 |
10.5 |
|
Production of LPG, ktonnes |
55.1 |
55.0 |
0.2 |
|
Average daily production |
2Q2019 |
1Q2019 |
Change, % |
1H2019 |
2H2018 |
Change, % |
|
Production of crude oil and condensate, ktonnes |
4.18 |
4.17 |
0.1 |
4.18 |
4.00 |
4.3 |
|
Gas production, mln m3 |
3.16 |
3.22 |
-1.9 |
3.19 |
3.04 |
4.7 |
In 1H2019, Ukrnafta increased average daily oil and condensate production to 4.18 ktonnes/day, up 6.3% y-o-y and 4.3% against 2H2018. Meanwhile, average daily gas production grew up to 3.19 mln m3/day, increasing 10.5% y-o-y and 4.7% vs. 2H2018.
In the reported period the company continues to increase production through efficient management of the existing wells. Ukrnafta completed four hydraulic fracturing operations, 71 capital workovers and 28 opex workovers. As of June 30, 2019, these operations enabled Ukrnafta to produce additional 19.04 ktonnes of oil and condensate and 41.18 mln m3 of gas. Moreover, in the reported period the company reactivated 76 idle oil wells. At the same time, Ukrnafta remains constrained in terms of investment resources because of unresolved problem of the outstanding tax debt. That prevents the company from maintaining high growth rates which is evidenced by slower growth in 2Q2019 vs 1Q2019.
With the positive production dynamics Ukrnafta still expects to beat its production plan for 2019, albeit the growth will be somewhat lower than expected earlier. According to the estimates as of July 1, 2019, the company expects to see the annual oil production increase by 3% to 1,490 ktonnes (plan – 1,451 ktonnes, oil production for 2018 – 1,448 ktonnes). Gas production is forecast to beat the plan by 4% at 1,123 mln m3 by the end of the year (plan – 1,084 mln m3, gas production for 2018 – 1,082 mln m3).
