18-24.02.2019
This week, RegalPetroleum started drilling a new exploration well in the Poltava region. Projected well depth is 4,859 m. The company expects to complete drilling in the third quarter of this year.
Vladimir Makhnovets, CEO of Ukrgazvydobutok and Prom-Energo Product of SmartEnergy Group, noted in an interview that royalty decentralization allowed communities to move on to drafting development budgets. At the moment, the companies are involved in 3D seismic at the Vasischevskoe and Ostrovekhovskoe fields and, based on its results, the companies intend to start drilling new wells with subsequent hydrocarbon recovery to increase royalty payments to local budgets.
The issue of cooperation with the communities was subject to discussion this week in Poltava. CEO of Poltavagazvydobuvannya Yevheniy Palenka held a meeting with UTC heads. He, in particular, noted that in 2018 Poltavagazvydobuvannya paid more than UAH 500 million to the local budgets of the Poltava region. Now producers and local communities have a common goal - increasing hydrocarbon recovery.
BurismaGroup reported the construction of the pipeline that will connect the two fields. The facility16.6 km in length to be built in the Kharkiv region.
Ukrgazvydobuvannya JSC applies sidetracking technology, resulted in the restoration of operation of the two wells from the idle stock. The average daily production rate of these wells amounted to 70 cubic meters of natural gas. Jobs are carried out by Service Oil LLC, which is subsidiary of RUE PA Belorusneft. Sidetracking at 6 wells is scheduled to be completed, under the contract, before the end of May.
11-17.02.2019
Last year, Burisma Group drilled 13 wells and completed overhauling 26 wells; hydrocarbon recovery was 1,080 MMCM. To date, the group launched cooler unit at the Rakitnyanskoe field and started construction of a new gas pipeline. The company intends to drill 21 wells in 2019.
With the brisk growth of natural gas trading, gas companies compete in gas sales as well. As Ukrnefteburenie PrJSC reported, following the results of last year, the company managed to sell a record volume of natural gas - 1,588 MMCM.
Service companies expand their expertise and production base. This week, as evidenced by online auction data, Endeyver LLC acquired a tank farm in the Poltava region.
On Friday, Gosgeonedr published a list of sites for which special permits are scheduled for auctioning. Among them are five areas in Ivano-Frankivsk and four in Dnipropetrovsk and Kharkiv regions.
One of the most discussed topics of the week was Ukrgazvydobuvannya’s year's results. Experts argue about whether the company will complete the plan outlined by the Cabinet of Ministers and analyze the factors that force the current performance.
According to the company, one of the main problems while implementing the 20/20 program is the development of the resource base. Refusals to approve new licenses throughout three years resulted, according to estimates of Ukrgazvydobuvannya, in a shortfall of 1 BCM of gas. At the same time, the company successfully completed the program provisions that related to equipment modernization, development and application of hydraulic fracturing and coiled tubing technology, successful geological exploration and discovering new fields.
04-10.02.2019
This week, Naftogaz confirmed the information that Oleg Prokhorenko will terminate his chairmanship in Ukrgazvydobuvannya on March 15, 2019. For three and a half years, Ukrgazvydobuvannya headed by Oleg Prokhorenko has achieved the highest production figures for several decades. Moreover, the state-owned company played an important role in the revival of the entire service market of Ukraine by choosing a strategy to follow the modernization and advanced technologies.
Ukrtransgaz JSC announces the next step within the implementation of the unbundling program - the creation of a new company Gas Transmission Network Operator of Ukraine LLC. Pavel Stanchak became the Director General of the company.
Companies continue to publish annual results. At the end of 2018, GEOALLIANCEGROUP production figures amounted to: 209 MMCM of natural gas, 23 thousand tons of gas condensate and 17 thousand tons of LPG. Let us recall that last year GEOALLIANCEGROUP started drilling a well at the Koshevoyskoe field in the Poltava region with a project depth of 6.2 km. For successful drilling in high-pressurized formations, BakerHughes has prepared a pore pressure model for GEOALLIANCEGROUP.
Another company reported on the results of the year. Last year, BurismaGroup increased oil and gas condensate production by 56%, up to 74.0 thousand tons. According to the company, this result was achieved thanks to the program of improved recovery, in particular, fracturing operations, as well as due to the growth of the stock of productive wells.
28.01-03.02.2019
Gosgeonedr announced new auctions for subsoil use. The relevant lots have already been placed on the electronic platform of the Ukrainian Energy Exchange. Among the lots put up for sale are seven sites with hydrocarbon deposits: Kadobnyanskoe field (Ivano-Frankivsk region), Drogobych area (Lviv region), Kalyuzhnaya-1 area (Sumy region), Opolonovskaya-2 area (Chernihiv region), Opolonovskaya-1 area (Chernihiv region), Dobrenskaya area (Kharkiv region), North-Efremovskaya area (Kharkiv region).
Online auctions and significant legislative changes gradually form a positive investment portrait of the Ukrainian oil and gas market for potential new participants. According to Roman Opimakh, Gas Producers Association CEO, following the results of the Ukrainian Gas Forum in London, more than 10 companies took interest in the oil and gas market of Ukraine and more than 100 forum participants were informed by leading Ukrainian experts about the prospects and peculiarities of entering the Ukrainian oil and gas market.
Ukrtransgaz GTS operator tested operations for the exports of natural gas on TAS Energia CountryStrany order. The mechanism is being tested on the Budentsa GTS at the Ukrainian-Slovak border. The purpose of such operations is to draw attention to a “bonded warehouse” service in the UGS of Ukraine. Exports (substitution) operations became possible thanks to the exit point tariffs previously set by the NEURC.
The week was also marked by anniversary dates -101 years since the establishment of the Geological Service of Ukraine and the 25th anniversary of the JV PPC in Ukraine.
One more company entered the site of the Ukrainian Energy Exchange to sell liquefied gas. RegalPetroleum to put up for auction on February 4, 2019 76 tons of LPG at a starting price of UAH 13,500/ton to be shipped by truck from Yakhnyki village (Lokhvitsa district, Poltava region).
