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OVERVIEW OIL AND GAS: July 2021

7,1

In the first 6 months of 2021, Ukraine produced 9.75 bcm of natural gas - 4% less than in 2020.

This is evidenced by the recent report of the GTS Operator of Ukraine.
Production decreased by 7% compared to 2019.
At the same time, state-owned companies Ukrgasvydobuvannya JSC and Ukrnafta PJSC reduced production most.
The Association of Gas Producers of Ukraine says that in June this year 1.61 bcm of gas was produced, which is 2.6% less than in June 2020.
Ukrgasvydobuvannya JSC (Naftogaz Group) reduced gas production by 4% compared to the same period last year. Ukrnafta PJSC increased gas production by 2% compared to June 2020. Independent gas production companies show an increase of 0.8% compared to the same month in 2020.
The share of state-owned enterprises in the total volume of gas production in June 2021 was 75.2%, while independent companies produced 24.8%.
According to the Association of Gas Producers of Ukraine, 31 drilling rigs were involved in drilling in Ukraine in June, which is 2 units (-6%) less than in May. The stagnation can be explained, first of all, by the financial plan of the companies completed at the end of the year and the high risk of failure from making immediate and impulsive investment decisions, which may result in significant losses.

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