What was the last year for you?
It was a year of very rapid changes and serious trials. This year was stressful. Gas production is an investment-intensive business. To get a rebound, one needs to invest a lot and do it on a regular basis. Under the global economic crisis amid the pandemic, the risk of any investment increases dramatically. Even those amounts that are meaningful for the development of gas production may simply lack. Our Group of Companies reduced its investment program by more than a third this year. It is a big stress for production.
What, in your opinion, should be done first to restore the industry and successfully move forward in the new environment?
With the decline in the investment attractiveness of the industry, it is necessary to support it with certain actions by the state: tax benefits, simplification of permitting procedures, extension of existing preferential measures (for example, reduction of the royalty rent for new gas wells) - all this will mitigate the economic crisis effect. Many countries that understand the contribution of the hydrocarbon industry to their overall well-being have taken such steps back in the spring.
What do you consider the main achievement of the year? (Personal/your company’s)
I believe the main achievement of Smart Energy companies is the growth of production figures: we steadily increase the volume of hydrocarbon recovery. For 11 months of this year, we already have 366.7 mmcm of gas - about as much as was produced for the whole last year (369 mmcm). Such dynamics can be maintained, despite the reduction of investment, changes in operation and natural depletion of the layers, thanks to the rational revision of our production program and, of course, the high professionalism of our specialists.
What advice would you give to your colleagues? What will help businesses better adapt to changes?
An important guarantee of current stability for our Group of Companies has been our flexibility in change response. The next day after the announcement of lockdown nationwide, we switched to remote work format for office employees and the mode of two-week (and later three-week) shifts for teams in the fields. We promptly reviewed our operating budgets and, accordingly, the terms of cooperation with contractors. Sanitary and hygienic procedures have been strengthened at all facilities. These prompt and at the same time well-reasoned steps gave the obvious result: the pandemic did not affect our production results, and the cases of disease are very selective and immediately localized, even if we are talking about industrial shifts.
What are your goals for next year?
Our goal is to maintain production at the current level, to develop all assets, to start at least drilling at two of our five fields, to reconstruct the TMSU (temporary measuring separation unit) at the Mekhedivsko-Holotovshchynske field. Potentially, we expect to change the focus of our attention to a new asset - Svistunkivsko-Chervonolutske field, as nothing has been done there for almost 15 years, and today its state is rather neglected. However, given the situation with the lawsuit by Ukrnafta PJSC against the former holders of the special permit for the field, it seems unreasonable to fully develop it now.
