28.12.2020-03.01.2021

For the oil and gas industry, the year ended with the long-expected signing of seven production sharing agreements, tenders for which were held back in 2019. This refers to Buzivskaya, Berestyanskaya, Balakleiskaya, Ivanovskaya, Sofievskaya, Zenkovskaya and Ugnevskaya areas.
Let us recall that winners of the tenders were Ukrgasvydobuvannya (Buzivskaya, Balakleiskaya, Berestyanskaya and Ivanovskaya areas), DTEK Oil&Gas (Zinkovskaya area), Geo Alliance Group (Sofievskaya area), Zakhidnadraservis (Ugnevskaya area). The text of the agreement on the Varvinsky site with Ukrainian Energy L.L.C is being finalized.
At the first stage, the companies took on obligation to drill over 30 wells, and the guaranteed volume of investments for these projects will amount to at least USD 355 million. In particular, DTEK Oil&Gas companies signed a production sharing agreement (PSA) on Zinkovskaya area. The company's investments in exploration and development of this site will amount to more than UAH 1 billion.
In general, according to the IEA forecasts, gas demand in 2021 will recover and will almost reach pre-crisis levels. Thanks to this, gas prices will raise in all major regional markets. Only the uncertainty related to the pandemic can hinder relative stability, experts say.

Smart Energy Group reported the extension of the special permit for Sviridovskoe field. The term of the special permit for subsoil use was extended for another 20 years. Thus, the company noted that the Representative Office of Regal Petroleum Corporation Limited will invest in these territories for another 20 years, increasing gas production.
In November 2020, Ukrnafta PJSC paid taxes to the budgets of all levels in the amount of UAH 846.9 million.
The amount of taxes paid for 11 months of 2020 reached UAH 11.25 billion.
Ukrnafta PJSC paid UAH 432.7 million of royalty rent for subsoil use to the state and local budgets in November 2020. Of them, UAH 21.63 million were paid to local budgets.
Ivano-Frankivsk region is traditionally among the leaders in terms of royalty payments by Ukrnafta – UAH 5.02 million. Lviv region received UAH 1.89 million.

21-27.12.2020

DTEK Oil&Gas completed drilling of the well No. 57 5,270 m deep at the Machukhskoe field. The well flow rate is 300 mcm per day. The well was drilled under ultra-high reservoir pressures, but an integrated approach to all construction processes made it possible to drill the well in 136 days, 32 days ahead of schedule.

The drilling contractor was Service-Oil. The directional section of the well was drilled using Schlumberger rotary steerable systems and LWD logging modules. A comprehensive approach to applying the latest research methods proposed by Weatherford was implemented while drilling. The uncovering of the productive part of the section was carried out using the inverted hydrocarbon emulsion WITER II by Geosynthesis Engineering.
The year ends with good news for Naftogaz Group. A new field was discovered in the Poltava region. Zhemchuzhnoe field contains + 2 bcm of prospective gas reserves and resources and + 200 mmcm of proven gas reserves. The total area of the new field is 213 km².
On December 22, Ukrnafta PJSC solemnly opened on the territory of the production base (Priluki) a workshop to repair electric centrifugal pumps. Now it is the only workshop in Ukraine to repair electrically centered pumps with the execution of a protocol for the computer verification of the EPCP parts after the repair.
Modern repair technologies will make it possible to increase the turnaround time of wells and reduce cost of oil produced per ton. This is one of the main indicators for the company to determine the efficiency of work and the cost price of production: the higher it is, the more efficiently the company operates, Ukrnafta notes.
The company also announced the full repayment of the "historical" tax debt. The company transferred UAH 28.9 billion to the special fund of the state budget. This amount includes debts for VAT, income tax and royalty rent, fines and penalties accrued for late payment of monetary obligations.

14-20.12.2020

A start has been made to the unblocking of the PSA implementation at the Yuzovskaya area. The license for the Yuzovskaya area has been in dormant status for many years.

Last week, Naftogaz of Ukraine NJSC was granted the right to join the project as a 100% owner of Nadra Yuzovskaya LLC, which is the investor party under the Agreement.
The Union of Geologists of Ukraine announced the drilled deep prospecting well No. 1 Kubashevskaya by order of ENERGY SERVICE COMPANY ESCO-PIVNICH. The bottom of the well is at a depth of 6,620 m. Geophysical survey was carried out by Nadra Service in the interval 0 – 6,620 m by general and detailed surveys. The geological and technical service of Nadra Service previously had experience in the study of wells more than 6,000 m deep.
Over 11 months of 2020, DTEK Oil&Gas paid UAH 38.6 million in royalty rent to the budgets of the Poltava region.
Also, the reconstruction of the school was carried out in Velyki Sorochyntsi with the support of DTEK DTEK Oil&Gas. As part of the social partnership program between DTEK Oil&Gas and the Mirgorod district, the premises were repaired and the equipment of the canteen of the Velyki Sorochyntsi secondary school was replaced. The company allocated UAH 650 thousand for reconstruction.

07-13.12.2020

It has been a year since the appointment of Taras Kuzmich as the Chairman of the Board of Nadra of Ukraine NJSC. During this time, more than 10 previously abandoned hydrocarbon wells were restored on the balance sheet of Ukraine and were leased to subsoil users. Also, agreements were signed for the primary geological and economic assessment of reserves and other kinds of work with a total cost of almost UAH 10 million. Considerable efforts were made to eliminate the company's financial debts.

It became known this week that the State Service of Geology and Subsoil of Ukraine extended the validity period of Ukrtransgaz’s special permits for the use of subsoil of Bilche-Volytsko-Uherske, Uherske, Dashavske, Bohorodchanske, Proletarske and Solokhivske underground gas storage facilities. The validity period was extended for 50 years.
Technological engineers of Katt Ukraine LLC within two days completed the installation, lowering and installation of technological equipment for 473mm casing string at the well of the Semirenkovskoe gas condensate field in the Poltava region.
Denimex Inc. won Ukrgasdobycha’s tender for the purchase of drilling equipment, including 11 HD service packers in the range and 81 repair kits. This became known on December 9, 2020 in the Prozorro system.
The HD service packer is used for all types of cementing, fracturing, high pressure acidizing and the like. This type of packer withstands high pressure and uses a 3-piece sealing system, J-shaped slot and locking mechanism for easy installation.
Symoil UA LLC, a member of the SYMOIL GROUP international Group of Companies, once again successfully completed the installation of packer equipment in a well with high pressure and temperature as part of the workover at the next well of the permanent Customer – Ukrnaftoburenie JSC.
The operational aspect was lowering and installing a production packer on the tubing followed by its withdrawal and re-installation on another operation facility. To achieve this, a hydraulically driven Rhino Grip packer was used for 127 mm production casing. The depth of work was 4,930 m. Packer removal was carried out by applying upward force.

30.11-06.12.2020

Last week, the Verkhovna Rada of Ukraine, with 300 votes in favor, adopted in the second reading and as a whole the bill on amendments to the Law of Ukraine "On Public Procurement" regarding natural gas purchase No. 3176. The law allows the GTS Operator to enter the exchange and purchase gas to balance the system. This law is in line with the EU regulation No. 312 setting the rules for balancing gas in transport networks.

According to the press service of the UEE, 2.1 bcm of natural gas were sold at the Ukrainian Energy Exchange over 11 months of 2020, which is 6 times up compared to the same period last year. In total, 235 trading sessions were held in 2020 with 75 companies - initiators of the auctions - offering natural gas for purchase or sale. In 2020, the popularity of UGS resource trade has grown. Over 11 months, sales of this resource amounted to 298 mmcm against 33 mmcm in 2019.
As Ukrnafta reports, Poltava well control unit carried out emergency repair work in early November to drill casing with further release of excess pressure. This happened during the workover of the DENIMEX WORKOVER SOLUTIONS’s well.
This allowed for possible further safe workover and removal of special plugs previously installed in the tubing string.
Smart Energy Group of Companies announced the extension of the validity period of the special permit for the use of subsoil (hydrocarbon recovery) of the Mekhedovsko-Golotovschinskoe field. The company received the valid permit back in July 2004. The validity period was extended for 20 years. Daily field production is 300 mcm of gas and 55 tons of condensate.