24-30.06.2019

From the beginning of the year, Ukrnaftoburinnya PrJSC developed the third well. Its depth is 5,520 m, and the daily production rate of the well No. 32 was 140 thousand cubic meters of natural gas and 8 tons of condensate. The company notes that this well is of complex design and was drilled using separate services.
As a way to settle Ukrtransgaz’s financial shortage situation for the purchase of gas for production needs, the Chairman of the Board of Naftogaz of Ukraine NJSC Andrey Kobolev proposed to freeze certain volumes of gas in the UGS and thereby unweight operating assets. According to Andrey Kobolev, one supplier has already agreed to such a settlement scheme.
Eru Trading LLC and UTG entered into an agreement on debt restructuring for a total amount of UAH 14.7 billion, writing off accrued penalties and settlement of other mutual claims. Such a step for Eru Trading was largely made possible by covering the risks of gas supplies to Ukrtransgaz by the American investment company OPIC.
Analysts say that now is the most favorable period for gas accumulation in UGS of Ukraine. According to UTG, as of the morning of June 24, 13.07 BCM of natural gas was accumulated in UGS, which is 20% more than last year.
The Committee on Foreign Affairs of the House of Representatives of the US Congress approved a bill that can introduce targeted sanctions against companies involved in the construction of the Nord Stream - 2. Andrey Kobolev wrote about this on his Facebook page.

17-23.06.2019

Ukrgazvydobuvannya JSC acquired 7 new oil and gas areas at the third round of electronic auctions of the Public Service of Geology and Subsoil of Ukraine. The bidding took place on June 18.
Three areas are located on the territory of the Ivano-Frankivsk region: Yasenskaya, Goshevskaya and Bolekhovsko-Smolyanskaya. Four more - Kokhovskaya, Orelsko-Brusivskaya, Rozdolovsko-Uspenovskaya-1 and Rozdolovsko-Uspenovskaya-2 are located in the borderland between Kharkiv and Dnipropetrovsk regions. The value of special permits for the above areas is UAH 89.2 million.
The activation of online auctions allowed Ukraine to enter the top 10 countries that hold rounds of auctions for oil and gas areas. This is reported by the Association of Gas Producers of Ukraine.
During this week’s meeting with gas traders, Andrey Favorov announced Naftogaz’s readiness to enter the Ukrainian Energy Exchange to trade gas. According to Andrey Favorov, the starting price of lots will be approximately equal to Naftogaz’s purchase price.
Under the previously announced РЕС contracts, Ukrgazvydobuvannya qualified four companies - Baker Hughes GE, Expert Petroleum, Beiken Energy, PPC – the worthy candidates for the development of depleted fields.
Ukrtransgaz informed about the threat of an emergency situation due to the lack of fuel gas for June-August because of failed tenders for the purchase of 880 MMCM of gas. Ukrtransgaz believes that the reason for this can be undue calculations with counterparties. At the moment, the amount of debt is UAH 4.1 billion.
At the same time, the positive news was the report of the representative of the government on the strategic energy infrastructure of Poland Peter Naimsky on Poland’s readiness to launch a 2 BCM gas pipeline that will connect the Polish gas transmission system with the Ukrainian one in Germanovitsy.
In turn, Andrey Kobolev on his Facebook page wrote: “Now we are negotiating that, firstly, the capacity for import should become guaranteed. Secondly, we are arranging to completely unblock the Drozdovitsa border point - it is now blocked by Gazprom, which does not allow it to be used by other suppliers. To do this, it is required to enter into a direct agreement between the Ukrainian and Polish operators of the gas transmission systems and introduce the European rules of cooperation. This will significantly increase opportunities for gas imports to Ukraine. ”

10-16.06.2019

Service Oil LLC - Belorusneft subsidiary - drilled a new well for DTEK Neftegaz in a record-short time - 3.5 months. Instead of the expected 175.6 days, it took just 109.9 days to drill the well. The depth of the 72nd Semirenkovskaya well is 5,500 m. The Smith Bits bit service was applied in order to achieve the highest speed of drilling. During the initial exposing of producing horizons, a highly efficient hydrocarbon-based drilling fluid was used, which has already proved successful in other wells of the company.

Poltava Petroleum Company announced the drilling of a new well. It took 24 days to drill the well No. 81 at the Novonikolaevskoe field 1,975 meters deep, which is also a high indicator for Ukraine. The current average daily production rate is 21 tons of oil and 4 thousand m3 of gas.
Just a week ago, we discussed the inclusion of Ukraine in the BackerHughesGERigCount report and its leadership in terms of the number of drilling rigs in Europe. A new achievement in the positioning of the Ukrainian oil and gas market in the international arena was the inclusion of Ukraine into the European Energy Family according to the statistical report of the British Petroleum Statistical Review of World Energy. Thus, in the report, Ukraine is no longer the part of the CIS region, and the analytics of country-wide data is brought in comparison with the European indicators. This result is now possible thanks to the initiative of the Association of Gas Producers of Ukraine and the support of the British Embassy in Ukraine and the Ministry of Foreign Affairs.
The names of the companies that applied for participation in the PSA for the Dolphin offshore plot are made public this week. Four applications were received. Among them: CaspianDrillingInternationalLtd. (Socar), Ukrnefteburenie PrJSC, Frontera Resources, Trident Acquisitions.
In turn, Gosgeonedr reported that the Greek energy company Flow Energy&Environmental Operations S.A took an interest in secondary geo-information for five areas. Bidding is scheduled for June 18.

03-09.06.2019

On June 7, 2019, Ukraine was included in the BakerHughesGERigCount index. The initiative of the Association of Gas Producers of Ukraine found support of the world-famous international system of accounting operating drilling rigs. According to the executive director of the Association Roman Opimakh, providing Ukraine with the BHGE RigCount index demonstrates a revival in the domestic market and serves as a good indicator for the arrival of leading gas producing and service companies in Ukraine.
According to the BHGE RigCount calculations as of May, 186 drilling rigs operated in Europe (44 offshore platforms), of which almost half - 84 - operated in Ukraine. Thus, in terms of the number of operating drilling rigs, Ukraine ranks first followed by Turkey (20 operating machines) and the United Kingdom (16 operating machines).
Ukrtransgaz PJSC published the results of the GTS operation in five months of the current year. For the period, transit of natural gas from the Russian Federation to the EU and Moldova increased by 8% and amounted to 37.6 BCM.
By the end of May, UGS of Ukraine contained 11.4 BCM of natural gas, which is more than the index of the same period last year by 19%.
Gas production in January-May 2019 grew by almost 3.5%. Thus, Ukrgazvydobuvannya JSC increased production by 2.4% to 6.44 BCM, Ukrnafta PJSC - by 10.1%, to 481.5 MMCM. Private producers increased natural gas production by 5.2%, having produced 383.2 MMCM.
At the same time, according to Ukrtransgaz, natural gas consumption continues to decline and for the period amounted to 13.6 BCM, which is 12% less than last year.
This week group of companies GEO ALLIANCE announced the beginning of the overhaul of the well No. 42 at the Lutsenkovskoe field by sidetracking.
The well is located in the Poltava region and was drilled in 2014. Its design depth is 5,400 m.
The work will be carried out pursuant to the technological scheme of cutting out the “window” in the production string with the subsequent incut of the side track from a stationary or removable wedge-diverter.
For the specified jobs, the modern machine manufactured by the drilling contractor Ukrburservis is applied. Among other service contractors GEO ALLIANCE also names WEATHERFORD, UKRNAFTAGAZSERVIS, EXALO, SCHLUMBERGER, DI PI SERVIS.