27-31.05.2019
VI Newfolk International Oil and Gas Conference “Coiled Tubing. Hydraulic Fracturing. Drilling Services. Geophysics. Directional Drilling” brought together over 240 participants and more than 100 companies in Lviv on May 30-31. An international team of experts covered Belarus, Poland, Canada, USA, Kazakhstan, Turkey.
Within the strategic session, Oleksandr Romanyuk, First Deputy Chairman of the Board – CEO of Ukrgazvydobuvannya JSC, noted that the company invoked geological survey, will continue updating the fleet of drilling rigs and will involve international contractors such as Weatherford and Schlumberger to carry out service operations. Oleksandr Romanyuk also noted that Ukrgazvydobuvannya JSC continues increasing the resource base by participating in Gosgeonedr auctions. Also this week Ukrgazvydobuvannya and Canadian VermilionEnergy jointly participated in 4 competitions for entering into a PSA in Ukraine.
The second day of the conference culminated in workshops by the general sponsor Weatherford, during which the guests of the conference could work out a number of management skills and analyze the effectiveness of business processes in the format of a business game.
In addition, the conference guests discussed new promising areas of cooperation - the creation of a museum of the oil and gas industry history, as well as the first results of specialized testing of oil and gas industry specialists trough the help of the Newfolk Industry Rating software.
The good news of the week was also DTEK Naftogaz’s announcement on the completion of drilling a new well. The company notes that the drilling of the well No. 72 at the Semirenkovskoe gas condensate field was carried out in a record short time - 3.5 months. The two-month drilling time reduction is now possible due to the use of the innovative engineering solution that provides for the elimination of one of the technical strings. Well depth is 5,420 m.
Let us recall that DTEK sponsored the “Geology. Exploration. Information” session of the VI Newfolk International Oil and Gas Conference.
Another feature of the conference was the competition of cover letters by students, teachers and post-graduates of specialized educational institutions. GEO ALLIANCE Group of Companies financed the participation in the conference of three authors of the best works.
We also enclose gratitude to the permanent sponsors of the Newfolk conferences - NOVFidmash and Horizonty.
During the event, Horizonty presented the results of the work of certified inclination equipment and shared own best practice in this field.
Among the promising areas for the development of the oil and gas market in Ukraine, NOVFidmash distinguished the possibility of using coiled tubing technologies for geophysical exploration.
20-26.05.2019
Director General of JV PPC Viktor Gladun was elected the member of the Board of Directors of JKX OilandGasplc. All shareholders supported his candidacy. According to Viktor Gladun, JV PPC team managed to “significantly improve production and financial performance, which, in turn, led to improved results for the entire Group”. Over the past two years, the company stopped production decline and increased production, drilled two new wells. At last year end, JV PPC increased its profit by 31.4%, which, in turn, accounted for 80% of the profits of the JKX Group.
Gosgeonedr invites investors to get acquainted with the primary geological information. Examples of information requests which can be addressed to the head of the Service Oleg Kirilyuk are published on the website of the agency. Roman Opimakh, Executive Director of the Association of Gas Producers of Ukraine, noted that this is an important step towards the move away from physical storage and libraries to the electronic dataroom.
The government adopted amendments to the Resolution of the Cabinet of Ministers of Ukraine No. 496 on the implementation of the “unbundling” model proposed at the meeting of the Coordination Council on May 16, 2019.
Trunk Gas Pipelines of Ukraine PJSC notes that the OU model (Ownershipunbundling) is based on the ownership principle and provides for filing an application for certification, entering into a transit agreement and obtaining property necessary for gas transportation bфy Trunk Gas Pipelines of Ukraine PJSC and does not require additional legislative changes.
In turn, Naftogaz hangs out for the ISO model (IndependentSystemOperator) of the detachment of the GTS operator, which is required to protect the interests of Ukraine in arbitration against Gazprom.
13-19.05.2019
The European Commission is handling a claim by Naftogaz of Ukraine NJSC regarding the anti-competitive influence of the Nord Stream-2. The European Commission confirmed the receipt of the claim and noted that it will be considered in compliance with the established procedures that do not provide for a specific time limit for such appeals.
Naftogaz says that this claim will not allow Gazprom to artificially drive up gas prices on the European markets. According to Yuri Vitrenko, CEO of the Naftogaz group, since Gazprom stands over Wingas, this results in an increase in gas prices in Germany and other European markets.
On May 21, the US Senate may consider sanctions against Nord Stream -2, in particular against European vessels that are laying the new pipeline. It is noted that these vessels use "technological know-how available to Western energy companies but not to Russia," the senators explained. According to experts, these sanctions will complicate the implementation of the project, but are unlikely stop it.
Gosgeonedra provided Ukrgazvydobuvannya JSC with a special subsoil use permit for the Lyubashevskaya oil and gas area in the Luhansk region.
Schlumberger presented a service that analyzes, based on electromagnetic technology, the characteristics of the reservoir in front of the drill bit in the wells. Thus, the purpose of this technology is to improve the efficiency of drilling and to help in choosing the optimal point of the casing string. Over 25 field test operations have already been carried out using the IriSphere service in Asia, Australia, Latin America and Europe.
06-12.05.2019
Ukrgazvydobuvannya JSC produced 5.14 BCM of natural gas for four months. This figure is 2.7% higher than in January-April last year. 60 fracturing operations were performed during the reporting period, which is also four times more than during the same period last year. At the same time, the company notes the difficulty of intensifying jobs on depleted fields due to a drop in pressure, which requires the replenishment of the company's assets with deposits in the early stages of development. Let us recall that last week the company acquired five new licensed oil and gas fields during auctions.
Within four months, Shebelinka refinery increased production of light petroleum products - up to 149.1 thousand tons, which is 9.3% more than for the same period last year. The main resource for production was the raw material of its own production - oil and gas condensate. According to Sergey Fedorenko, Director for Commercial Affairs at Ukrgazvydobuvannya JSC, production growth was promoted by increased consumer confidence in the plant’s products.
The strategic issues of further development of the oil and gas industry were discussed by the Chairman of the Board of Naftogaz NJSC of Ukraine Andrey Kobolev with journalists from The Voice of America. One of the key topics of the dialogue is the possibility of new gas confrontations with Russia as early as next year. At the moment, Gazprom has no clear position regarding the future transit through Ukraine after 2019. In this regard, Andrey Kobolev distinguished two areas of work to prevent a possible gas crisis - an increase in gas supply capacities from Europe and an increase in gas reserves. He noted, however, that the volume of gas reserves could exceed the conventional ones by 3 BCM. In addition to the above steps to maintain stability in the gas market, Andrey Kobolev also said that he did not rule out the possibility of purchasing American gas.
29.04-05.05.2019
The second round of online oil and gas auctions was held on May 2. Bidding took place for six of the seven plots offered for sale. The winner for five of them was Ukrgazvydobuvannya. The highest increase in the rate was recorded for the North-Efremovskaya area located in the Kharkiv region - the initial price grew by UAH 38 million and amounted to UAH 50 million.
Licenses were sold through the Ukrainian Energy Exchange. Bidders noted the reliability of the platform and professional support of the exchange.
In general, following the results of April 2019, 10 new companies joined the UEE bidding, including the Ukrainian Drilling Company and the Arab Energy Alliance.
Summarizing the results of the month, it was noted that due to interruptions in the supply of imported petroleum products, the gasoline trade became more intense, resulting in an increase in prices.
In turn, Ukrtransnafta JSC reported that as of May 2, it received UAH 29.2 million of revenue less due to the suspension of the transit of Russian oil towards Slovakia, the Czech Republic and Hungary since April 25.
The well drilled by Poltava Petroleum Company in 2019 gave production flow. The average daily production rate was 126 thousand cubic meters. The well No. 3 of the West-Mashevskaya area was drilled in a directional way with a 625 meter horizontal displacement. Well depth is 3,570 m.
RegalPetroleumplc summed up the financial results of last year. Thus, the company's profit for 2018 amounted to USD 54.3 million.
