Ukrnafta's May production decreased
Ukrnafta's May production decreased

According to the operational data, in May 2020, Ukrnafta produced 128.9 thousand tons of oil and condensate and 96.7 million m3 of gas, which, respectively, is 1.3% and 1.7% lower than in the same period in 2019. Average daily hydrocarbon production in May amounted to 4.16 thousand tons of oil and condensate and 3.12 million m3 of gas, slightly lower than in the same period last year. 

The Company manages to maintain production levels under conditions of limited investment resources through a number of operations on its existing wells: transition to new productive horizons, optimization of capital and current repairs of prospective wells, replacement of obsolete equipment. 

To ensure production stability, Ukrnafta conducted a program of scheduled repairs at gas processing plants. Prophylactic and repair works of water cooling systems of "cold" cycle of Dolynsky GPP and Pasichnyansky GPP were carried out, filters-separators for additional purification of liquefied gas from mechanical impurities were installed, re-equipment of compressor modification was carried out at compressor station of Gnidintsevsky GPP. 

Average daily production rates

May

2020

May

2019

Y-o-y change, %

Production of crude oil and condensate, ktonnes

4.16

4.22

-1.42

Gas production,

mln m3

3.12

3.17

-1.58

"Decrease in production in May was an expected against the reduction of capital expenditures as well as chronic underinvestment. The unresolved issues of tax debt and oil auctions continue to limit the company's ability to invest in its business development. At the same time, we will make great efforts to keep production at the level of last year." – noted Deputy Chairman of the Executive Board, Executive Vice President for Upstream Mavriky Kalugin.