Ukrnafta's production remains stable
Ukrnafta's production remains stable

Based on the current data, in January-February 2020 Ukrnafta produced 252.2 ktonnes of oil and condensate and 195.7 mln m3 of gas, 2.2% and 3.3% up respectively against the same period of 2019. Average daily hydrocarbon production in the first two months amounted to 4.2 ktonnes of oil and condensate and 3.26 mln m3 of gas, having slightly increased comparing to the same period last year.

In January, the company's specialists completed sidetrack drilling of the horizontal well #119G at Velykobubnivske field (Sumy region). The main feature and complexity of the project implementation was the small thickness of the target horizon (5-6 m), which required involvement of high-tech methods of geological modeling and directed drilling. Studies are currently underway to determine the well's production potential and optimal modes of further operation. Preliminary results show that the initial daily flow rate of well No. 119G exceeds 60 tons of hydrocarbon fluid.

Mavriky Kalugin, Deputy Chairman of the Executive Board, Executive Vice President for Upstream: "At Velykobubnivske field our specialists assessed the prospects of oil production from B-9 and B-10 carbonate horizons in Bashkir sediments, which had not been considered promising before. The high productivity of the new well shows that the production growth potential in the existing fields is far from being exhausted."

Average daily production rates

January -February 2020

January -February 2019

Y-o-y change, %

Production of crude oil and condensate, ktonnes

4.2

4.18

0.48

Gas production, mln m3

3.26

3.21

1.56

Ukrnafta has been growing its oil and gas production for the third year in a row. The unresolved issue of overdue tax debts, however, limits the opportunities to invest in business development. Ukrnafta can double its oil production within 10 years. This requires systematic investments of more than USD 100 million a year: in infrastructure modernization, drilling of new wells, and intensification of production at existing wells.