Naftogaz and Ukrgazvydobuvannya sign MoU with leading Oil & Gas service provider Schlumberger

Oct 30, 2018 | Category: Official
Naftogaz and Ukrgazvydobuvannya sign MoU with leading Oil & Gas service provider Schlumberger

Naftogaz, Ukrgazvydobuvannya (UGV) signed a Memorandum of Mutual Understanding with Schlumberger Services Ukraine to further enhance their strategic technology collaboration in drilling, hydraulic fracturing, hydraulic stimulation, software development and 3D modeling, as well as the provision of advanced equipment and software solutions.

The Memorandum underscores their expanding technical collaboration in oil and gas production and paves the way for the introduction of innovative technologies to help streamline gas production in Ukraine. This collaboration with Schlumberger will give UGV and Naftogaz access to high-technology solutions to help deliver their Strategy 20/20 goals.

The signatories of the Memorandum were Andriy Kobolyev, Chairman of the Naftogaz executive board, Oleg Prokhorenko, Chairman of the UGV executive board, and Gwenola Boyault, GeoMarket Manager, Schlumberger Europe and U.K.

During the signing ceremony, the Parties announced a new contractual agreement, finalized in October, for coiled tubing (CT) services, including high-technology services using CT units and engineering support. This three-year contract is valued at USD 92 million. One CT unit is already in Ukraine and is ready for use on UGV’s wells. UGV expects to improve its technological expertise and enhance the production of hydrocarbons using highly efficient CT services and other technologies provided by Schlumberger.

The Memorandum follows the signing of a three-year Multi-service agreement in March 2018 between UGV and Schlumberger, which has resulted in contracting 14 service lines in the drilling, geology and geophysics, and reservoir management domains. UGV has also purchased high-technology services and solutions through the MSA, including fluids, cementing, drill bits, engineering support, directional drilling, wireline logging, and 3D seismic interpretation amounting to more than USD 10 million.

Note for Editors

1.  Naftogaz is one of the largest companies in Ukraine and a leading enterprise in the country’s fuel and energy complex. Naftogaz is a vertically integrated oil and gas company engaged in a full cycle of operations in the sphere of gas and oil field exploration and development, production and exploratory drilling, gas and oil transportation and storage.

2. Ukrgazvydobuvannya (UGV) is the largest gas production company in Ukraine, producing 75% of Ukrainian gas. The company’s shareholder is Naftogaz. UGV is a vertically integrated company engaged in a full cycle of operations from exploration, prospecting and surveying oil and gas fields to production development and organization, transportation, processing and refining of hydrocarbons, and the sale of refined oil products.

3. Schlumberger is the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. Working in more than 85 countries and employing approximately 100,000 people who represent over 140 nationalities, Schlumberger supplies the industry's most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance.