Production Results for 2018
Production Results for 2018

PJSC Ukrnafta announces its production results for the fourth quarter and 12 months of 2018*.

Highlights:

  • Oil and condensate production up year-on-year for the first time in 12 years (+5%), leading to overall growth of oil production in Ukraine;
  • Natural gas production totalled 1.1 bln m3 for the year only 2% down year-on-year despite limited investment;
  • Both oil and natural gas production rates at the end of the year exceed production rates at beginning of the year showing positive momentum.

 

4Q2018

4Q2017

4Q2018/4Q2017, %

2018

2017

2018/2017, %

Production of crude oil and condensate, ktonnes

371

337

10.1

1 448

1 379

5.0

Gas production,  mln m3

284

251

13.1

1 082

1 108

-2.3

Production of LPG, ktonnes

29

27

7.4

110

116

-5.2

Mark Rollins, Chairman of the Executive Board of Ukrnafta: “2018 turned out to be very successful for Ukrnafta. Despite the unsolved problem of the tax debt that restricts our investment opportunities we’ve increased oil production for the first time since 2006 even if we were starting from a relatively low base. And the fact that we’ve done that with one of the smallest investment budgets in the industry and on naturally exhausted wells, demonstrates the huge potential waiting to be unlocked in Ukrnafta’s existing reserves.”

Analysis of operational results

In 2018, Ukrnafta increased oil and condensate production as well as factually stabilized natural gas production. The average daily production of oil and condensate increased by 5% up to 3.97 ktonnes/day against 3.78 ktonnes/day in 2017. Meanwhile, gas production demonstrated the insignificant decline from 3.03 mln m3/day to 2.96 mln m3/day.

At the same time, in 4Q2018 the average daily hydrocarbons production increased, not only comparing to the same period of 2017 (because of the low base effect due to the enforced stop of production in 6 fields), but also comparing to the results of the beginning of 2018. The average daily production of oil and condensate exceeded 4 ktonnes/day and of gas – 3 mln m3/day in 4Q2018.

The company succeeded to get positive production results under the condition of restricted investments due to works on the existing wells such as recompletions, optimization of capital and planned workovers and replacement of the obsolete equipment.

In total, last year, Ukrnafta completed 17 hydraulic fracturing operations, 121 capital workovers and 93 opex workovers. As of Dec. 31, 2018, due to the capital workovers, Ukrnafta produced additional 58.4 ktonnes of oil and 74.2 mln m3 of gas. The opex workovers resulted in incremental production of 27.2 ktonnes of oil and 12.4 mln m3 of gas.

* The company will announce the audited financial results at the end of April 2019.

 

For more information please contact press office: +38 044 239 14 93