29.07-04.08.2019

According to the available information, Ukrgazvydobuvannya started the process of well drilling and shut it down at night on July 28. Safety briefs are now conducted with the employees of drilling subdivisions. The tool is preparing to be placed down the hole, the wellbore is under preparation after a downtime.
Drill cuttings processing plant was launched at the Yablunivskoe field in Poltava. The plant will process cuttings from three wells daily. Materials for the construction of roads and houses will be produced from recycled cuttings.
Ukrnefteburenie PrJSC announced a tender for hydraulic fracturing services at the Sakhalinskoe oil and gas condensate field. The depth of two wells where the company expects to increase production does not exceed 5,500 m. Applications to be submitted before August 13.
Drilling company Horizonty carried out the overhaul of the 5-Tchaikovichi well, which made it possible to receive the industrial inflow of gas at the field.
This week, the Ivano-Frankivsk SPE Section was awarded the SectionExcellence Award 2019. Among all official SPE sections, only 20% of organizations can boast recognition of the high level of their work in developing the professional community.
Another news from an international professional organization was the election of Rikhard Bely to DeGolyer, Randeland McConnel AwardCommittee 2020. The competition committee will select three winners in professional nominations for achievements in oil and gas engineering, geology and administration.

22-28.07.2019

One of the most breaking news of the week was the presentation by Andrey Favorov, Director of the Integrated Gas Business at Naftogaz of Ukraine, of a new strategy for exploration and production of hydrocarbons.
The main focus of the new program is the feasibility of developing fields. The drilling strategy will be restricted to the circle of those candidate wells with credible investment payback. Thus, the main goal is to maintain the base production.
Like all to-date upstream companies, Ukrgazvydobuvannya intends to introduce on-field digitalization and update production system IT-infrastructure to optimize costs.
An interesting point in the company's new development strategy is also the emphasis on increasing production of liquid hydrocarbons as a response to favorable market trends.
The company continues to attract international companies to the development of depleted fields under the PEC and PSA contracts.
BurismaGroup is reviewing the possibility of restoring abandoned wells. Operating companies are currently considering the prospects for the restoration of old wells at the Dubrovsko-Radchenkovskaya area in the Poltava region. The Group was granted the right to develop this area at the auction in March 2019.
Another breaking topic of the week was the results of the competition for the development of the Delfin field. On Friday, the application of TridentAcquisitions was declared by the intergovernmental commission the best one submitted for the competition. It also became known that CaspianDrillingCompany revoked its application for participation in this competition. On Saturday, Vladimir Groysman, commenting on the results of the competition on his Facebook page, called its organization poor and said he would suggest organizing a new competition for the development of the offshore field.
Another commission’s decision this week was the selection of three new sites in the Dnipro-Donets Basin to work under the PSA conditions. Applicants will have three months to prepare and submit applications.

15-21.07.2019

This week, companies informed about the progress of drilling programs.
JV Poltava Petroleum Company announced completion of drilling a new well No. 142 at the Ignatovskoe field. This is the third new well drilled by the company since the beginning of the year. According to the press service of the company, the average daily flow rate on the choke (6 mm) is 152 thousand m3 of gas and 110 m3 of oil and condensate. The depth of the well at the moment is 2,515 meters. Its drilling took 33 days.
Zakhidnadraservis also reported the completion of exploratory well drilling.
The depth of the 8- Bystritskaya well is 1,335 m. The drilling time is 23 days. The contractors of the project were Drilling Company Horizonty, IFGDS and Weatherford Ukraine.
In turn, DTEK Neftegaz started drilling a new directional well No. 75. The horizontal displacement of the new facility will be 350 m, the design depth is 5,520 m. Drilling involves the use of equipment manufactured by Schlumberger, Weatherford, Smith Bits, NOV.
Ukrneftegazservis celebrates its sixth anniversary this month. Over this time, the team proved itself as a responsible contractor. More than 600 operations were carried out for the maintenance of downhole equipment in compliance with the Wenzel Downhole Tools’s procedures. The company is engaged in sidetracking, trajectory adjustment, drilling of S- and J-profiles, gamma logging and control drilling.

08-14.07.2019

Producing companies sum up the results of work for the second quarter and first half of 2019.

Poltava Petroleum Company reported an increase in gas production by 56.9% for the six months of 2019. In total, 131.3 MMCM of natural gas was produced during this period. Increase in oil and gas condensate production by the company over the same period was 19%. The total volume of oil and gas condensate production for six months amounted to 20.5 thousand tons.
RegalPetroleumplc of SmartEnergy Group announces growth in average daily hydrocarbon production. The figures grew from 2,829 to 4,073 boepd compared to the same period last year. The growth of average daily gas production in the fields of Kharkiv and Poltava regions increased by 41.4% - from 386.3 thousand m3/day to 521 thousand m3/day. The growth of average daily oil and gas condensate and liquefied gas production was 58.9 and 47.3 %%.
Ukrgazvydobuvannya JSC, in turn, made public the volume of commercial gas for the first half of the year. According to recent reports, it is 6.81 BCM of natural gas, which is 50 MMCM more compared to the same period last year. Gas condensate and oil production also increased. At the same time, as Ukrgazvydobuvannya JSC noted, the volume of falling base production amounted to 780 MMCM in January-June 2019, which significantly exceeds the preliminary calculations.
The Association of Gas Producers of Ukraine informed about BakerHughesGERigCount’s new data. In June, 193 drilling rigs were involved in Europe, of which 144 were operating on shore and 112 were producing gas. 89 drilling rigs operated last month in Ukraine, which is 5 more than in May.
As part of restructuring of the divisions of Ukrgazvydobuvannya JSC, the technological direction of gas production will be distributed between the positions of Production Director headed by Steve Baldwin (SteveBaldwin, COOChefoperatingofficer), Mikhail Paduchak, Director of Drilling Directorate, and Yuri Nagornyak, Director of Oil and Gas Service Division. Steve Baldwin will now manage geology and exploration, development and production. Mikhail Paduchak is still responsible for drilling. Yuri Nagornyak will be responsible for the oilfield service, including hydraulic fracturing, coiled tubing, sidetracking and other types of workover, well stimulation and recovery.

01-07.07.2019

The winners of tenders for entering into PSAs for nine oil and gas areas were determined. The Intergovernmental commission at the Ministry of Energy and Coal Industry determined seven companies as winners.
Ukrgazvydobuvannya’s bids were accepted as the best for Buzovskaya and Berestyanskaya areas. Also, the joint bid of Ukrgazvydobuvannya and the Canadian company VermilionEnergy won the tender for the development of the Balakleyskaya and Ivanovskaya areas.
The American company AspectEnergy will carry out works on the Varvinsky block.
GEOALLIANCEGROUP was granted the right to the Sofievskaya area, DTEK group companies Neftegaz Oil and Gas Overseas Trading BV - to the Zinkovskaya area, Ukrnefteburenie PrJSC – to the Rusanovskaya area, Zakhidnadraservis - to the Ugnivskaya area.
The total area of sites put up for the tender is 11,400 square meters. In total, 23 bids were received from 14 companies.
Ukrgazvydobuvannya JSC announced the discovery of two new fields based on the results of exploration in June. In the Kharkiv region, a prospecting 3,700 m well gave an inflow of oil, and the resources of the new field amount to 130 thousand tons. The resource of the gas condensate field in the Poltava region with a prospecting 6,300 m well, according to preliminary estimates, is 2.7 BCM of gas.
In turn, Ukrnafta PJSC reported the start of drilling a new well at the Verkhnemaslovetskoe field in the Lviv region. As the company notes, the design depth of a directional well is 1,500 m with a 185 m horizontal displacement. The company expects its initial productivity to be 27 tons of oil per day. The drilling is expected to be completed in mid-August. Works were commenced on June 24, and, as of July 4, 318 meters were drilled.
This week, Naftogaz Trading for the first time sold gas on the Ukrainian Energy Exchange. According to the UEE, the high level of competition on July 5 was due to the attractive starting price of UAH 4,939.16 with VAT included per thousand cubic meters m for the July resource and UAH 5,033.13 with VAT included per thousand cubic meters for the August resource. As a result of the auction, the price for the July resource amounted to 3.7% above the starting price, while for the August resource the increase in the weighted average price was only 8 UAH per thousand cubic meters.