As part of its 2017 investment program PJSC Ukrnafta is planning to invest approximately UAH360 mln to upgrade its existing electrical submersible pumps (ESP) and replace the sucker rod pumps (SPR) with more efficient ESPs. The company specialists have identified the prospective wells where modernisation will produce the highest return on investment.
This year, Ukrnafta is planning to procure 248 ESP replacement sections, as well as electrical submersible motors, gas separators, protectors, cable extensions, oil submersible cables, downhole gauges, field control stations, tubing and other equipment. Additionally, the company will procure 79 new all-new complete ESP systems to replace the now-operational SPRs and low-yield ESPs. The company expects that these measures will help increase oil output from existing wells and stabilise production with limited funding.
As the company reported earlier, last year Ukrnafta stabilised daily oil production, including through use of ESPs. Based on the favorable results of the last-year ESP replacement pilot project the company made the decision to deploy more productive ESPs at the existing wells.
In 2017, Ukrnafta expects to increase its investment program to UAH 2.5 bln reinvesting all savings from the reduction of the oil rent to 29%. The bulk of investments will be made in the upstream to maintain and upgrade basic production systems, including replacement of tubing, workovers, as well as to increase yields from the existing wells through deployment of ESPs, use of waterflooding and other production intensification methods. The company also plans to increase its investments in drilling, retail and IT systems.
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