Ukrnafta holds oil and condensate production through 2020
Ukrnafta holds oil and condensate production through 2020

PJSC Ukrnafta announces its production results for the fourth quarter and 12 months of 2020.

 

 

4Q2020

4Q2019

Change, %

2020

2019

Change, %

Production of crude oil and condensate, ktonnes

366

381

(3,9)

1 501

1 516

(0,9)

Gas production, mln m3

266

292

(8,9)

1 127

1 162

(3,0)

Production of LPG, ktonnes

28,7

29

(1,0)

117

112

4,5

By the end of 2020, Ukrnafta maintained oil and condensate production at the level of 2019. Production of liquid hydrocarbons amounted to 1.5 million tonnes, and average daily production of oil and condensate was 4.1 thousand tonnes per day. Natural gas production was 1.13 billion m3, down 3% compared to 2019, with an average daily production of 3.1 million m3/day. Production of liquefied gas increased by 4.5% to 117 thousand tonnes.

Given that Ukrnafta operates on fields with a significant degree of depletion, the production figures indicate that the company managed to compensate for the high rate of natural production decline. The company focused on operations at the existing well stock: transition to new productive horizons, recompletions, optimization of capital and planned workovers and replacement of the outdated equipment.

In total, last year, Ukrnafta completed 4 hydraulic fracturing operations, 133 capital workovers, performed 24 operations with coiled tubing units without a workover crew, 15 production intensification operations and took 107 wells out of non-operation. Thanks to these operations, the company managed to produce additional 145.4 ktonnes of oil and condensate and 79.4 million m3 of natural gas.

The company continues introduction of remote monitoring of wells equipped with electric submersible pumps (ESP). In 2020, 34 wells were added to the system and now the system covers 207 wells.

On 22 December 2020, Ukrnafta opened a new ESP repair service centre in Pryluky - the only one in Ukraine that performs incoming inspection of new ESPs and repairs of ESPs with a computerised inspection protocol. Its facilities allow for a full cycle of ESP repair, and once completed, the installation will be fully in line with factory settings.

Mavriky Kalugin, Deputy Chairman of the Executive Board, Executive Vice President for Upstream:

 "This past year has been challenging for most businesses, and it is no different at Ukrnafta.  For the past five years, my colleagues at Ukrnafta have done much in support of delivering arrest of production declines in depleted fields. We managed not only to stop the decline, but even to increase production with minimal investment resources. 2020 was the year we had spent the least in terms of basic material expenditure and capital investments, yet we delivered 0.9% less oil and 3% less gas than last year.  This is an enormous achievement considering the difficult environment in which our company has operated.".