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OVERVIEW OIL AND GAS: May 2020

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25-31.05.2020

Regal Petroleum plc was renamed Enwell Energy plc. Smart Energy Group reported the new brand of the British company. At the moment, the new website of the company has solely the English version, but the Ukrainian version will be available by July.
The Ministry of Ecology and Natural Resources was again divided into two separate agencies. On May 27, the Cabinet of Ministers established the Ministry of Environmental Protection and Natural Resources. This was announced by the government representative Vasily Mokan on his Facebook page. He also informed that the same resolution proposed to rename the Ministry of Ecology and Natural Resources Ukraine as the Ministry of Energy of Ukraine. Both Ministries are the legal successors of the Minecoenergo established in 2019 by combining the two Ministries.
The State Service of Geology and Subsoil of Ukraine continues to introduce specialists who will work to improve the service of the state-owned enterprise, which is key for the extracting industry.
In a new interview, Anna Khtema, the head of the Department for Subsoil Use and Enforcement of Special Permits and International Cooperation Procedures, told about priority tasks.
In particular, she noted that during the year it was planned to introduce regular Working Groups for Subsoil Use, without delaying the term of processing applications. This is a priority, since the State Service of Geology and Subsoil of Ukraine deals to provide prompt and high-quality service for the industry participants. Another particularly important area of work, according to Anna Khtema, is to ensure a clear, transparent and approachable procedure for granting special permits for subsoil use.

 

18-24.05.2020

DTEK Oil&Gas successfully completed multi-stage hydraulic fracturing. It helped obtain industrial inflow of gas and condensate and bring the well back to the production well stock. Thanks to this, the company proved the availability of hydrocarbon reserves in a horizon that was not previously developed industrially. The feature was that hydraulic fracturing was carried out in a reservoir with low permeability at a depth of more than 5,000 m under high pressures and temperatures. DTEK Oil&Gas notes that involving new hard-to-recover reserves is a strategic goal not only for the company, but for the country as a whole.
Another DTEK Oil&Gas technological achievement was the creation of a virtual server - specialized graphic stations. The virtual server was created, first of all, for specialists in geology and development DTEK Oil&Gas who build 3D models of fields in the Petrel software and deal with data of more than a hundred gigabytes. Virtual server significantly increases the efficiency and safety of the field modeling process.
In turn, Regal Petroleum, part of the Smart Energy Group of Companies, also reports the production of the industrial inflow of hydrocarbons from a new exploration well at the Sviridovskoe field. Well drilling was launched in October 2019. The industrial inflow of natural gas and gas condensate amounted to 80 TCM/day and 5 tons/day, respectively. Studies are now being conducted of the well operation with gas supply to the hydrocarbon collection and treatment unit.
Actual well depth is 5,322 m. The industrial inflow of hydrocarbons was obtained from the B-23 prospective horizon of the Visean stage.
The Ukrainian State Geological Exploration Institute completed the formation of the Fund of Oil and Gas Prospective Facilities (the explanatory note) and a set of maps of the structure of oil and gas regions of Ukraine (East, West, South) (M 1: 500 000) as of 01.01.2020, which are already available for purchase.
The explanatory note contains basic information on oil and gas prospective facilities with a resource base and deposits of the unallocated subsoil reserve fund of oil and gas regions of Ukraine, as well as information on the distribution of facilities within special permits and the company-owner of the special permit (state or commercial), the number of the special permit, the period of validity.

 

11-17.05.2020

Ukrgasvydobuvanny’s service fleet was reinforced with 5 workover rigs with a lifting capacity of 125 tons manufactured by the Chinese company ZPEC. The company notes that the new rigs will restore complex and deep Naftogaz’s wells in the Eastern region. Investments in new equipment amounted to USD 10.5 million.

The Supervisory Board of Naftogaz of Ukraine appointed Otto A. Waterlander the CEO of Naftogaz Group. Waterlander also holds the position of CEO for the Group transformation.
The main tasks of Otto Waterlander are operational and transformation processes in the Group, in particular, the introduction of a new operating model and divisional management structure, the implementation of cross-functional processes and the development of process databases.
Naftogaz Group also appointed Sanjar Zharkeshov the Deputy Head of the Exploration and Production Division.
According to Otto Waterlander, this appointment will help to ensure that the function of exploration and development of gas fields brought to the level of the Group will reach a world class.
On Friday, the Federal Network Agency of Germany (Bnetza) rejected the application of the Nord Stream 2 AG operator to provide Nord Stream 2 with exemptions from the EU Gas Directive. In this regard, Elena Zerkal, an adviser to the head of Naftogaz noted on her Facebook page that Nord Stream 2 AG would probably exercise its right to appeal the regulator’s decision within the next month. In her words, the preservation of the transit role of Ukraine is still in question, and the transit may be equal to zero provided the gas pipeline is built. U.S. sanctions may be constraining factor.
The results of the IPL educational online platform competition were resumed.
According to the results of judging, the winners of the competition are:
• in the GEOLOGY AND EXPLORATION category - student of the Poltava College of Oil and Gas of the National University named after Yuri Kondratyuk Tamila Shirai;
• in the RESERVOIR MANAGEMENT category - student of the Yuri Kondratyuk National University "Poltava Polytechnic" Dmitry Klyushka;
• in the DRILLING category - student of the Yuri Kondratyuk National University "Poltava Polytechnic" Dmitry Derevianko;
• in the ENGINEERING category - student of the National Technical University "Kharkov Polytechnic Institute" Anna Karman;
• in the PRODUCTION category – student of the IFNTUOG Taras Shumilan;
• in the INDUSTRY IMPROVEMENT category - student of the Yuri Kondratyuk National University "Poltava Polytechnic" Oksana Mikiychuk.
The winners were awarded with gifts by Schlumberger Ukraine, Weatherford Ukraine and the main partner of the competition Ukrgasvydobuvannya JSC and consultation from the best HR specialists in the industry on CV preparing.
The work of students of the 501-GO group of the Oil and Gas Engineering and Technology specialty of the Yuri Kondratyuk National University "Poltava Polytechnic" Vadim Kovtun and Konstantin Duvanov was the best according to Newfolk OGCC and will be awarded with free participation in the Lviv Oil and Gas Conference.

 

04-10.05.2020

Denimex Workover Solutions LLC overhauled the well at the Sakhalinskoe field without its killing using a new snubbing unit. The customer of the services was DC Ukrnefteburenie PrJSC. As UNB reports, the workover was carried out without killing the well using the latest hydraulic snubbing unit by Denimex Workover Solutions LLC - RDE-340K 2019 year made with 180 ton lifting capacity. Among the advantages of the unit is the ability to operate at the wellhead with a static pressure of over 350 atm. Jobs were carried out in the well to replace the tubing lift with gas-tight chrome pipes in order to extend the trouble-free operation of the well for at least 4 years.
According to the Unified Register of Legal Entities of the Ministry of Justice, Ukrgasvydobuvannya JSC, a member of Naftogaz of Ukraine Group of Companies, established Naftogaz Drilling LLC, the key activity of which will be drilling. The head of the new company is Andrey Delitkanich.
The company also experienced personnel shifts within the transformation of the corporate structure of Naftogaz. So, Elena Kobets was appointed CEO of Ukrgasvydobuvannya JSC, Naftogaz’s key upstream asset. Prior to that, for almost five years she headed the legal department of the company as a director of legal affairs and a member of the board.
In turn, Alexander Romanyuk headed the new Exploration and Production division. Previously, he served as First Deputy CEO of Ukrgasvydobuvannya JSC.
In the new position, he will be responsible for developing the division’s strategy and business plan, approving investment projects and budgets, managing the operating activities within the agreed strategy, budget and investment plan, appointing and dismissing employees, as well as labor protection issues.

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