22-28.06.2020

Cadogan Petroleum restores production at the Blazhev-3 and Blazhev-Monastirets-3 wells at the Blazhivskoe oil field in the Lviv region.

The company extended the lease of Ukrnafta’s wells for a new term. Earlier in late 2019, work was suspended due to the expiration of lease agreements.
“Following successful negotiations, we agreed to extend the lease of two wells for a new term. We expect the wells to restore production to the previous level despite idle period,” Andriy Bely, CEO of the Ukrainian office of Cadogan Petroleum, said.
This week, Naftogaz’s commercial line received a new manager - Willem Coppoolse will be responsible for gas retail and trading.
According to the company’s press service, Willem Coppoolse has been responsible for Eastern European markets and Ukraine for over 25 years in major European energy and gas companies - Gaz de France, EDF, GDF SUEZ, ENGIE. Willem Coppoolse also supported Naftogaz's unbundling as a commercial adviser from a consortium of the European gas operators - Gasunie.
Olga Bielkova joined the team of the Gas Transmission System Operator of Ukraine LLC and took the lead on the international relations and work with government bodies.
Her main task in this position is to promote and protect the interests of the GTSOU in the international arena, primarily on the implementation of the Nord Stream-2 projects and other bypass gas pipelines. In addition, her priority is to complete the process of full integration of Ukraine into the European gas market.

15-21.06.2020

Olga Belkova asked parliamentarians to support her resignation statement.

During her deputy cadences, Olga Belkova provided significant support during a difficult period for the gas industry. Thanks to her legislative initiatives, decisions were made on the operation of the gas market, on transparency of the extractive industries, on royalty rent decentralization, on the operation of the energy regulator and a number of others that had a positive impact on the development of the gas industry.
In her address to the people's deputies, Olga Belkova noted that she remained committed to the principles of parliamentarism and, being a professional, wanted to make sure that her laws work properly in the real sector of the economy.
The Stockholm Court of Arbitration made a decision in favour of Ukrgasvydobuvannya JSC in a dispute with Karpatygaz and Misen Enterprises AB.
Thus, Ukrgasvydobuvannya gets the ownership of all assets that were involved in joint activities. In turn, UGV shall compensate other parties for their share in the value of these assets. The core of the dispute is to determine the amount of compensation to be paid by UGV. Karpatygaz and Misen Enterprises AB claimed compensation for 50.01% of the total value of the common property. By the decision of the Arbitration, this percentage was reduced more than twice. UGV’s share in joint activities was increased.
This week, the Verkhovna Rada supported in the second reading the bill No. 3438, which regulates public hearings in accordance with the EIA Law for the period of lockdown. The bill No. 3438 will make it possible to unlock the development of gas fields.

08-14.06.2020

Naftogaz Group improved terms of partnership projects with private companies. This is one of the steps to stabilize gas production in a down economy.
Improved conditions of dealing with private partners are aimed at stimulating the restoration of abandoned wells and gas production from these wells. Significant reduction in gas prices made it unprofitable for Naftogaz Group partners to invest in abandoned wells. To avoid termination of projects, Naftogaz brought the terms of cooperation in line with current market conditions. The distribution of profit between partners and Naftogaz will be on parity 50/50 basis, at any price level.
It should be noted that from the beginning of cooperation under the above projects, production saw 106.6 MMCM increase of gas and 5.4 thousand tons of gas condensate and oil. At the same time, the Group’s income grew by UAH 200 million.
Another important Naftogaz Group’s achievement was the high performance of a new 6,000 m deep exploratory well - 260 TCM of gas per day and plus 350 MMCM of explored reserves. Thus, the strategy to increase the resource base by moving to deep deposits of promising fields gives its results. This is the second successful exploratory well at the Berezovskoe field.
Also, Naftogaz Group continues restructuring by strengthening the team. This week, the Group announced the appointment of Andrey Misiniov as CEO of Poltavagazdobycha. According to the head of Exploration and Production Division of Naftogaz Group Alexander Romanyuk, this appointment is in line with the intended strategy for combining modern Western management approaches and technologies with high-powered Ukrainian experience.

01-07.06.2020

The volume of gas stored by foreign companies in Ukrainian UGSs quadrupled compared to the figures at the beginning of June last year.

According to the data of Ukrtransgaz JSC, volumes of natural gas transferred by market participants to UGSs using special short haul transportation tariffs keep on growing. Year-to-date, residents transported 0.1 BCM of gas to the customs warehouse using these tariffs, while non-residents transported 0.7 BCM. Only in this May, non-residents transported 0.5 BCM to UGSs at “short haul” tariffs, which is two and a half times more than in April 2020.
Sergey Alekseenko, CEO of Ukrtransgaz JSC, noted: “In May of this year, there was a high demand for services of Ukrainian UGSs from foreign traders. We believe this dynamic to continue in the coming months. The extent of completeness of European gas storages is about to see the maximum. For example, in Austria today it is almost 85%, in Germany - 84%, in Italy - 68%. In Ukraine, this figure is 58%. Today we have about 13 BCM of free capacity, competitive conditions and unique opportunities for the efficient use of Ukrainian gas storages. So, we are ready to further involve European traders to cooperation.”
Poltava College of Oil and Gas of the Yuri Kondratyuk National University hosted a scientific and practical workshop devoted to the prospects for the implementation of snubbing technologies in Ukraine. Representatives of KUB-Gas LLC, DENIMEX WORKOVER SOLUTIONS LLC, DTEK Neftegaz, Ukrnafta PJSC participated in the discussion.
Ivan Kostryba, a teacher of special disciplines at the Poltava College of Oil and Gas of the Yuri Kondratyuk National University, Ph.D., who has been studying snubbing technologies for many years, was one of the speakers.